Listed construction concern China Rich Holdings has announced a $517.8 million bid for privately held Hong Kong-based telecommunications and Internet firm New Media, topping a rival offer.
China Rich Holdings' bid came after listed country-club operator Essential Enterprises offered to acquire stock from New Media shareholders, which could provide a back-door listing opportunity for New Media.
China Rich's offer is about $11 million higher than Essential's bid.
China Rich said it had signed a non-binding memorandum with New Media, which expired last week, and was preparing a draft formal agreement with a number of key New Media shareholders, which own about 40 per cent of the firm.
Shareholders include chairman Robert Cheney, William Au-yang, Victor Lee Shui-kwai and Ronald Cheng. Mr Cheng is the brother-in-law of China Rich chairman Robert Yip.
China Rich said once a draft formal agreement was signed, a voluntary offer of $517.8 million or $232.5 per share would be made to New Media shareholders.
Mr Yip said $190 million of the bid would be paid with cash and the remainder through the issue of new China Rich shares and convertible bonds.