THE shares of Pacpo Holdings and Hongkong Building and Loan Agency (HKBLA) were the top losers on the stock market yesterday following the collapse of takeover bids by China Strategic Investment.
HKBLA lost $6, or 30.9 per cent, to finish at $13.40 on a turnover of $1.57 million. Pacpo shed $1.10, or 30.3 per cent, to $2.525 on a turnover of $1.85 million.
The takeover bids fell through because five of the eight lenders behind a revolving $435 million facility granted to HKBLA in June last year objected to the change of beneficial ownership of the company.
Schroders Asia, the agent for all eight lenders, declined to give the reason for the objection.
Under the deal, minority shareholders in Pacpo would have been offered $3.82 a share, while HKBLA minorities would have been offered $20.43.
The five lenders that objected were Westdeutsche Landesbank, Bank Austria, Hongkong Chinese Bank, Societe Generale and Schroders.