Jardine International Motor Holdings (JIMH) - the only Hong Kong-listed unit of Keswick family-controlled Jardines - has announced a proposed privatisation of it by the luxury car-distributor's parent Jardine Matheson.
Jardine Matheson, which owns 75 per cent of JIMH, has proposed purchasing 119.88 million shares from JIMH's minority shareholders at HK$4.295 each, for a total consideration, including for options purchased, of HK$520.2 million.
Jardine Matheson will pay for the acquisition using internal resources.
The price consisted of HK$4.10 cash from Jardine Matheson and 2.5 US cents by way of a special dividend from JIMH.
The proposed purchase price represented a 71.8 per cent premium to the last traded price of HK$2.50, before trading was suspended on Monday pending a price-sensitive announcement.
The price is a 36.4 per cent discount to the net asset value of HK$6.75 per share as on December 31, last year.