HONG KONG ECONOMY TODAY NEWS (Sept 2) - KFM Golden (03816) and Luxshare Precision (02475) (Shenzhen: 002475) wholly-owned subsidiary Luxshare Hong Kong jointly announced that KIG Real Estate, which holds 56.43% equity in KFM Golden through Sun Guohua, Chairman and Executive Director of KFM Golden, has agreed to sell 57% equity stake in KFM Golden to Luxshare Hong Kong for HK$684 million. As the offeror, Luxshare Hong Kong will make a mandatory unconditional cash offer in accordance with the rules, at an offer price of HK$2.00 per share, representing a 55.9% discount to the last closing price of HK$4.54 before suspension. KFM Golden has been suspended since September 14 and has applied to the Hong Kong Stock Exchange to resume trading from 9:00 a.m. today.
The group stated that the maximum consideration payable by Luxshare Hong Kong under the offer will be approximately HK$300 million, and the offer price will not be increased. It is intended to continue operating KFM Golden's existing business and maintain its listing status after the completion of the offer.
*Proposed issuance of convertible bonds to raise HK$360 million*
In addition, the group stated that under the special mandate, it proposes to issue zero-coupon convertible bonds with an aggregate principal amount of HK$360 million to Luxshare Hong Kong and five investors. Luxshare Hong Kong will subscribe for HK$252 million of the principal amount, with a conversion price of HK$2.00 per share. Upon full conversion, 180 million new shares will be issued, increasing Luxshare Hong Kong's stake from 57% to 60%. The net proceeds are expected to be used as follows: approximately 25% for expanding manufacturing investments in Suzhou, China and Malaysia, approximately 50% for general working capital, and approximately 25% for repaying bank loans. (wh)
The group stated that the maximum consideration payable by Luxshare Hong Kong under the offer will be approximately HK$300 million, and the offer price will not be increased. It is intended to continue operating KFM Golden's existing business and maintain its listing status after the completion of the offer.
*Proposed issuance of convertible bonds to raise HK$360 million*
In addition, the group stated that under the special mandate, it proposes to issue zero-coupon convertible bonds with an aggregate principal amount of HK$360 million to Luxshare Hong Kong and five investors. Luxshare Hong Kong will subscribe for HK$252 million of the principal amount, with a conversion price of HK$2.00 per share. Upon full conversion, 180 million new shares will be issued, increasing Luxshare Hong Kong's stake from 57% to 60%. The net proceeds are expected to be used as follows: approximately 25% for expanding manufacturing investments in Suzhou, China and Malaysia, approximately 50% for general working capital, and approximately 25% for repaying bank loans. (wh)
