Investors yesterday shunned the HK$236 million takeover of Joyce Boutique Holdings by an e-commerce investment company, dumping the upmarket retailer's shares and contributing to a 47.72 per cent slump in the counter's price.
The shares, which have been suspended from trading since March 17 pending Tuesday's takeover announcement, slid by as much as 53.78 per cent to an intra-day low of 30.5 cents, before rebounding slightly to close at 34.5 cents.
The fall, which made the counter yesterday's second-biggest loser in percentage terms, presented a sharp contrast to its gain of 55.29 per cent on its suspension day, when speculation had it as a backdoor listing target.
Both the Ma family, the controlling shareholders, and prospective buyer Strategic Capital Group (SCG) dismissed concern over yesterday's share slump.
SCG is proposing to pay HK$202.8 million to acquire a 51.7 per cent stake in two phases of new share subscription.
Joyce Boutique managing director Adrienne Marie Ma said: 'Compared to the NAV [net asset value] per share of 25 cents, the existing price level is still reasonable.' Meanwhile, SCG managing director Eric Solberg said: 'The market will go up and down, but it is nothing to do with us.' Under the proposed transaction, independent investor Elliott Yuen Wai-kuen, who will become chief executive of the company, will take a 10.7 per cent stake by investing HK$33.42 million to subscribe to new shares.
The Ma family's holding will be diluted from 47.2 per cent to 18.8 per cent after the subscriptions.
