Oei in general offer for China Strategic
China Strategic Holdings chairman Oei Hong Leong has made a general offer for the company at $2.50 a share, valuing the entire company at $1.65 billion.
This follows a share option Mr Oei exercised yesterday, giving him the right to subscribe to 12.3 million new shares in the company, or 1.9 per cent of existing share capital, a company spokesman said.
The exercise price of $2.27 represents a 4.4 per cent discount to Tuesday's close of $2.375.
Following the exercise of the option, Mr Oei's holding rose from 34.66 per cent to 35.76 per cent, triggering a general offer for the company, the spokesman said.
Under listing rules, a company or a party is obliged to make a general offer for all the shares in a listed company if its holdings reach 35 per cent.
Mr Oei would offer $2.50 a share and one cent for every warrant, the spokesman said.
This represents a 5.2 per cent premium to Tuesday's close of $2.375.
The company's shares were suspended yesterday.