Economic Information Daily News (6th) reported that Lian Yang Intelligent Holdings (01561) announced it has entered into a memorandum of understanding with a company held 70% by Liu Huiyi and 30% by Huang Shijie regarding the proposed restructuring of the group. If the transaction is completed, the company PC held 70% by Liu Huiyi and 30% by Huang Shijie will hold approximately 66.55% of the shares and become the controlling shareholder, and will apply to the Executive Authorities for a waiver of the mandatory general offer. Both parties must enter into a definitive agreement by December 31, and the proposed restructuring is subject to shareholder approval. The group has been suspended since September 10 and has applied to the Hong Kong Stock Exchange to resume trading of its shares on the Hong Kong Stock Exchange from 9:00 a.m. today.
The group stated that the proposed restructuring includes consolidating every 10 shares into 1 share, with PC investing HK$80 million to subscribe for 212 million new consolidated shares at HK$0.37736 per share, representing approximately 66.55% of the enlarged share capital. The group's closing price before suspension was HK$0.06. Assuming the consolidated shares take effect, the adjusted closing price would be HK$0.60, representing a discount of approximately 37.11% on the issue price. The proceeds raised, approximately HK$30 million, will be used to repay debts owed to creditors under the creditors' scheme, approximately HK$10 million will be used to settle the costs of the proposed restructuring, and approximately HK$40 million will be used for general working capital purposes. PC must grant the group an unsecured, interest-free loan of HK$8 million to cover professional fees related to the proposed restructuring and subscription matters.
*Proposal Involves Debt Restructuring and Change in Board Lot Size*
In addition, the group stated that the proposed restructuring also includes debt restructuring through a creditors' scheme and a change in the board lot size.
The group noted that Liu Huiyi was formerly an executive director of Kangjian International Medical (03886) and is currently the CEO of Shangbentang Holistic Scientific Research, while Huang Shijie, who has previously engaged in legal practice, is admitted as a Hong Kong barrister and solicitor. (wh)
The group stated that the proposed restructuring includes consolidating every 10 shares into 1 share, with PC investing HK$80 million to subscribe for 212 million new consolidated shares at HK$0.37736 per share, representing approximately 66.55% of the enlarged share capital. The group's closing price before suspension was HK$0.06. Assuming the consolidated shares take effect, the adjusted closing price would be HK$0.60, representing a discount of approximately 37.11% on the issue price. The proceeds raised, approximately HK$30 million, will be used to repay debts owed to creditors under the creditors' scheme, approximately HK$10 million will be used to settle the costs of the proposed restructuring, and approximately HK$40 million will be used for general working capital purposes. PC must grant the group an unsecured, interest-free loan of HK$8 million to cover professional fees related to the proposed restructuring and subscription matters.
*Proposal Involves Debt Restructuring and Change in Board Lot Size*
In addition, the group stated that the proposed restructuring also includes debt restructuring through a creditors' scheme and a change in the board lot size.
The group noted that Liu Huiyi was formerly an executive director of Kangjian International Medical (03886) and is currently the CEO of Shangbentang Holistic Scientific Research, while Huang Shijie, who has previously engaged in legal practice, is admitted as a Hong Kong barrister and solicitor. (wh)
