Dawning focus of $201m offer

PUBLISHED : Monday, 04 September, 2000, 12:00am
UPDATED : Monday, 04 September, 2000, 12:00am

Shenzhen High-Tech Holdings has signed a letter of intent to acquire the entire share capital of mainland technology company Dawning.

Dawning develops computer programmes for sale on the mainland and sells computers and servers. The 215 million yuan (about HK$201 million) deal will be settled in new shares and convertible notes.

The new Shenzhen High-Tech shares will be issued to the shareholders of Dawning at 19.45 HK cents each, a discount of 32 per cent to the closing price of 28.5 HK cents on Friday. The convertible notes will have a maturity of two years and a conversion price of 19.45 HK cents.

Dawning recorded a net profit of 6.16 million yuan for the year to the end of December. As at June 30, it had a net asset value of 215 million yuan.

The acquisition is expected to be completed by the end of the year, pending due diligence.