Takeover bid lifts HK Parkview up 43pc
Shares in The Hong Kong Parkview Group shot up nearly 43 per cent yesterday after Cofco Corporation announced a HK$362.18 million takeover bid for the property investment company.
The stock climbed to a 52-week high of HK$2.40 before closing at HK$2.10 and recorded a turnover of HK$6.78 million when it resumed trading yesterday after two days of suspension. The Hang Seng Index closed down 1.1 per cent.
The rally came after Cofco (HK), a wholly owned subsidiary of Cofco Corporation, proposed to buy 393.67 million shares, representing about 73.5 per cent of the entire share capital of Hong Kong Parkview, at 92 HK cents apiece.
Cofco (HK) also owns a stake in four other Hong Kong-listed companies: China Foods, China Agri-Industries, CPMC and China Mengniu Dairy.
Cofco Corporation is a state-owned enterprise registered on the mainland and under the purview of the State-owned Assets Supervision and Administration Commission of the State Council. It has interests in a wide array of businesses, including agricultural commodities trading and agricultural products processing, food and beverages, real estate, packaging materials, hotel management, logistics, animal by-products and financial services.
The offer price represents a discount of 37.4 per cent on the closing price of HK$1.47 on Friday, its last trading day before the company requested a suspension.
Hong Kong Parkview is 73 per cent held by chairman George Wong Kin-wah and his three brothers: Victor Hwang Yiou Hwa, Richard Hwang Yiu Hwa and Tony Hwang Teh Hwa. The three Hwangs are also executive directors.
The proposed offer values the company at HK$492.53 million, according to the announcement filed to the Hong Kong stock exchange.
For the year to March, Hong Kong Parkview's profit attributable to shareholders was HK$21.91 million, down 30 per cent from a year earlier. Profit was mainly boosted by an increase in the revaluation of its investment property.