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Exchange protects shareholders in WTCG deal

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SCMP Reporter

THE stock exchange has imposed special conditions on a World Trade Centre Group (WTCG) deal in a move to ensure minority shareholders' interests are adequately protected.

In a statement last night, WTCG and parent company Tomson Pacific said the exchange had asked them to put the share option deal to the vote of their respective minority shareholders at special general meetings.

China National Cereals Oils and Foodstuffs Import and Export Corp (Ceroil) launched a takeover bid for WTCG shares in June.

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Tomson Pacific, which holds 640 million shares, about 35 per cent of WTCG, has agreed to accept the offer.

Under the conditional deal, when acceptance was more than 50 per cent of WTCG's share capital, Ceroil would have the right to request that Tomson require holders of WTCG options to exercise their options and accept the offer.

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The options were granted to Tong Cun-lin, managing director of Tomson Pacific, and five other parties.

The options, most granted on March 26, 1993, represented 172 million WTCG shares at a subscription price of $1 per share.

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