China Strategic wants Po Wing Kwan in logistics
China Strategic Holdings plans to expand property firm Po Wing Kwan International (Holdings), which it took over last month, into the logistics sector.
E-commerce business investor China Strategic yesterday said it had offered to buy the 479.29 million Po Wing Kwan shares it did not already own at 90 HK cents each.
The offer price represented a 30 per cent premium over the average per share price of 69.2 cents paid by China Strategic for a 23.58 per cent stake last month.
It also represents a substantial discount to Po Wing Kwan's per share net asset value, which is about HK$1.53.
China Strategic paid HK$185.4 million to increase its stake in Po Wing Kwan to 57.82 per cent, passing the threshold for a mandatory share offer.
The company is to finance the acquisition, which will cost up to HK$431.36 million, from internal resources.
The deal is to be conducted through China Strategic subsidiary China WTO.com.