Rejection of Tai Ping deal hits shares
Shares of Tai Ping Carpets International dropped more than 10 per cent yesterday after its majority shareholders, the Kadoorie family, scrapped a privatisation plan.
In an announcement late on Tuesday, Tai Ping said it had been informed by the consortium that had made the approach about a possible privatisation that it was 'unable to agree conclusive terms'.
'Therefore, no privatisation offer will be made,' the company said.
The Kadoories, who indirectly hold about 51.6 per cent of Tai Ping, and associate iVentures I, which has a stake of 5.4 per cent, approached the company about a possible privatisation on May 21.
Shares of Tai Ping, the largest carpet maker in Asia outside Japan, have shot up 67 per cent over the past three months. In response to the cancellation of the privatisation plan, the counter fell 10.9 per cent yesterday to close at $1.39.
Analysts had estimated a privatisation could cost the majority shareholders about $140 million, given Tai Ping's market capitalisation of $288 million.