[ET Net News Agency, 27 February 2015] econtext Asia (01390) said its controlling
holder Digital Garage, Inc. proposes to privatize the company at HK$4.09 per share,
representing a premium of about 41% over the closing price of HK$2.9.
The total cash payment under the proposal will be about HK$880.5 million which will be
funded from a new credit facility made available to the offeror by Sumitomo Mitsui Banking
Corporation.
The offeror believes that the price of companies in payment related businesses has risen
significantly due to the strong investment appetite of global investors. As a result,
econtext Asia will require substantially more funding than it previously expected in order
to facilitate its ongoing acquisition strategy. While econtext Asia is currently exploring
opportunities to invest in certain companies as part of its ongoing expansion, the offeror
believes that the current valuations of these companies make it difficult for econtext
Asia to execute acquisitions on its own.
econtext Asia has applied for the resumption of trading in shares this morning. (HL)