Polytec Holdings has taken control of Kowloon Development by acquiring a 51.5 per cent stake from the controlling shareholders for HK$892.6 million.
The takeover was launched by Polytec's wholly owned subsidiary Intellinsight Holdings. The takeover bid values Kowloon Development at HK$1.73 billion.
Intellinsight will buy 249.3 million shares from Kowloon Development chairman Ng Siu-chan and other key shareholders at HK$3.58 each.
The price represents a 6.87 per cent premium above its closing price at HK$3.35 on December 7. Intellinsight will make an unconditional offer for outstanding shares at the same price of HK$3.58 each.
Shares of Kowloon Development closed at HK$3.50 yesterday.
Intellinsight is owned by Or Wai-sheun's family. Mr Or is engaged in property development and investment as well as textiles and garments in Hong Kong and Macau. The group intends to retain the listing status of Kowloon Development.