CITIC Pacific Ltd said on Sunday it will offer to buy Dah Chong Hong Holdings Ltd (1828.HK) for HK$3.02 billion to “re-engineer” the businesses of the motor and consumer products distributor for improved competitiveness. 

This sent the stock price up 20% on Monday Morning.

CITIC Pacific, a unit of CITIC Ltd and which owns 56.81% of Dah Chong Hong, will offer HK$3.70 per share to acquire the outstanding 816.77 million shares in the firm that it does not already own. 

The offer price represents a 37.55% premium over the stock’s closing price of HK$2.69 on Oct. 14. Trading in Dah Chong Hong shares, which was suspended on Oct. 15, will resume on Monday. 

Dah Chong Hong will apply for a withdrawal of listing from the Hong Kong bourse upon completion of the deal.

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