KVB Kunlun sale to take place at HK$0.65 per share, shares plummet


Breaking Forex News… The next step in the KVB Kunlun sale saga has taken place, with the company disclosing some important – yet surprising – information. Specifically, KVB’s major shareholder, Mr. Li Zhi Da, has agreed to tender most of his 75% stake in KVB to a still unnamed acquirer for HK$0.65 per share, valuing KVB at HK$1.3 billion (about USD $169 million).

The surprising part? The market was clearly expecting a much higher offer.

As we reported earlier, news that a deal might be in the works sent KVB shares flying up to as high as HK$1.67 per share last week, although they did settle lower in the HK$1.10 range. News of the lower-than-expected offer price sent KVB shares down 7% in Monday HKEx trading and a further 16% today – although still well above the HK$0.65 offer price, closing Tuesday at HK$0.84.

KVB share price down

Clearly, the market is expecting a higher offer to emerge, at least as far as the public shareholders are concerned.

Hong Kong’s Takeover Code states that an acquirer buying more than 30% of a company gives rise to an obligation for the acquirer to make a mandatory unconditional general offer for all the other company shares. So if the deal with Mr. Li goes ahead, the mystery acquirer will need to make a general offer for all KVB shares, at terms no worse than Mr. Li receives.

At this point, a letter of intent (or LOI) has been signed between Mr. Li and the acquirer stating:

  • the Controlling Shareholder (Mr. Li) intends to sell more than 50% of KVB’s shares (he owns 75% in total)…;
  • … at an indicative price of HK$0.65 per share;
  • the payment method will be subject to further negotiations;
  • the potential purchaser is paying an exclusivity fee in the sum of HK$50 million to the Controlling Shareholder, in cash, within five business days after signing the LOI.
  • the Potential Purchaser is entitled to conduct due diligence.

We’ll continue to bring our readers more details as they emerge.

To see details of the full LOI click here.

Related News

arrow

KVB Kunlun sale to take place at HK$0.65 per share, shares plummet

0

Send this to a friend

Subscribe to LeapRate
PGlmcmFtZSBzcmM9Ii93cC1jb250ZW50L2E0bHIvaGFuMTZyZXNfNjI1eDQwMC5odG1sIiB3aWR0aD0iNjI1IiBoZWlnaHQ9IjQwMCIgZnJhbWVib3JkZXI9IjAiIHN0eWxlPSJib3JkZXI6bm9uZTsiIHNlYW1sZXNzPjwvaWZyYW1lPg==
PGlmcmFtZSB3aWR0aD0iNjQwIiBoZWlnaHQ9IjM5NSIgc3JjPSJodHRwczovL3d3dy55b3V0dWJlLmNvbS9lbWJlZC80Mzc5MThJbFc5ST9yZWw9MCZjb250cm9scz0wJnNob3dpbmZvPTAiIGZyYW1lYm9yZGVyPSIwIiBhbGxvdz0iYXV0b3BsYXk7IGVuY3J5cHRlZC1tZWRpYSIgYWxsb3dmdWxsc2NyZWVuPjwvaWZyYW1lPg==
Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry:
PGlmcmFtZSBzcmM9Imh0dHBzOi8vczMtZXUtd2VzdC0xLmFtYXpvbmF3cy5jb20vZW1haWwubG1heHN0YXRpYy5jb20vaHRtbDUvTGVhcHJhdGUvTE1BWERpZ2l0YWwyNTB4OTAvTE1BWERpZ2l0YWw2MDB4NDI1UG9wVXBHcmV5Lmh0bWwiIGZyYW1lYm9yZGVyPSIwIiB3aWR0aD0iNjAwIiBoZWlnaHQ9NDI1Ij48L2lmcmFtZT4=
PGlmcmFtZSBzcmM9Imh0dHBzOi8vd3d3LmxlYXByYXRlLmNvbS9hNGxyMTcvdWZ4MTgvNjAweDQyNV8xc3QtVGltZUxlYXBSYXRlLWVuLUdCX0hUTUw1Lmh0bWwiIGZyYW1lYm9yZGVyPSIwIiB3aWR0aD0iNjAwIiBoZWlnaHQ9NDI1Ij48L2lmcmFtZT4=
PGlmcmFtZSBzcmM9Ii8vY2RuLmJhbm5lcnNuYWNrLmNvbS9iYW5uZXJzL2JjaWVod29iOC9lbWJlZC9pbmRleC5odG1sP3VzZXJJZD0zMTU5MzQwNiZ0PTE1MTAxMzg3MTAiIHdpZHRoPSIxMDAlIiBoZWlnaHQ9IjEwMCUiIHNjcm9sbGluZz0ibm8iIGZyYW1lYm9yZGVyPSIwIiBhbGxvd3RyYW5zcGFyZW5jeT0idHJ1ZSIgYWxsb3dmdWxsc2NyZWVuPSJ0cnVlIj48L2lmcmFtZT4=