Minority attacks Tingyi on share sale
A group of minority shareholders has criticised instant-noodle maker Tingyi (Cayman Islands) Holding for allegedly ignoring their interests during a $1.1 billion share placement.
Tingyi's parent, Ting Hsin (Cayman Islands) Holding, last week reached an agreement to sell half of its 66.28 per cent stake in Tingyi to Japanese packet-noodle maker Sanyo Foods.
The placement upset minority shareholders as Sanyo offered Ting Hsin 80 cents a share for the stake, a 12.7 per cent premium to June 14's closing of 71 cents.
Sanyo's purchase does not breach the general offer trigger of 35 per cent.
However, Sanyo is seeking confirmation from the Securities and Futures Commission that it does not need to make a general offer, a condition of the deal's completion.
In a letter to Business Post yesterday, shareholder representative Tony Turner complained minority shareholders had been deprived of opportunities to take up Sanyo's offer.
Tingyi has been trading below the offer price during the past year with its share price hitting a year peak of 78 cents in December.
The company sold its shares at $1.68 when it debuted on the stock exchange in 1996. It closed yesterday 1 cent higher at 62 cents .
Mr Turner urged Sanyo to make a general offer.
Tingyi, Ting Hsin and their financial adviser Goldman Sachs (Asia) would not comment yesterday while the commission said it would not comment on individual companies.