Lily Chiang to decline bidder's invitation

PUBLISHED : Friday, 07 June, 2002, 12:00am
UPDATED : Friday, 07 June, 2002, 12:00am

Pacific Challenge chairwoman Lily Chiang will resign if a takeover bid succeeds, despite the bidder inviting existing directors to remain on the board.

Ms Chiang's intentions were revealed in a letter from the board of directors included in a document from independent financial adviser Anglo Chinese Corporate Finance, which recommended shareholders accept the takeover offer by Cheong Tin-yau.

Pacific Challenge is still embroiled in a legal battle with its second-largest shareholder, Kistefos Investment, which has alleged the company was run in a manner that harmed its interests.

The offer by Mr Cheong is 67 HK cents a share and 35 HK cents per outstanding option. If all share and option-holders accept, it would be worth HK$201.06 million.

'The board notes the intention of [Mr Cheong] to invite the existing directors of the company to remain if the offers become or are declared unconditional,' the letter from the board said.

'However, Dr Lily Chiang has indicated to the board that if the offers become or are declared unconditional, she intends to resign as a director of the company as soon as is practicable thereafter.'

Kistefos declined to say whether it would accept the offer.

Pacific Challenge shares closed up 1.54 per cent at 66 HK cents yesterday.