appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

appConfig

filter

json

liveArticle

Kenneth Ko

ILLUMINATION Holdings, controlled by Beijing International Trust and Investment Corp (BITIC), is expected to pay up to $256.5 million for its takeover of Hongkong Worsted Mills.

  Based on two interim independent valuations on the company's assets, the price payable by Illumination is expected to be about $256.5 million or $241.5 million.

  The final price will be concluded on completion of the assets valuation on June 30.

  Based on the interim valuations, Illumination will acquire about 29.3 million shares, or 68 per cent, of Hongkong Worsted Mills at $8.75 or $8.24 per share from Tai Hing Cotton Mill.

   At those valuations, the takeover price would represent a discount of 7.9 per cent or 13.26 per cent to the closing price of $9.50 on Wednesday last week.

  Hongkong Worsted Mills was suspended from trading last Thursday. Trading is expected to resume this morning.

  Illumination is 70 per cent owned by BITIC, and 30 per cent by Sunbird which is controlled by Mr Ng Kwong-fung and Mr Brian Ng Kong-fat.

  Founded in 1984, BITIC is the commercial and investment arm of the Beijing municipal government.

    The proposed takeover will effectively make Hongkong Worsted Mills a Hongkong-listed vehicle for the Beijing authority.

  Illumination intends to continue the existing core businesses of Hongkong Worsted Mills in the woollen and worsted manufacturing and property investments.

  BITIC and Sunbird have stated that they have no intention of injecting any related businesses into Hongkong Worsted Mills within the next 12 months.



$256m tipped to be paid for Worsted