Beer power-brokers out to bag another deal

The same individuals behind the world's first hostile takeover battle for a mainland firm, Harbin Brewery Group, have swapped beer and politics for ladies' handbags.

Barely 12 months ago, Peter Lo, Peter Jeva Au and David Sun titillated Hong Kong's equity market with a racy takeover battle that pitted two international beer giants against each other. South African giant SABMiller eventually bowed out of the fight, taking $1.64 billion from rival Anheuser-Busch for its stake in the mainland company.

Harbin Brewery executives Mr Lo and Mr Au made little secret of their support for Anheuser-Busch, while Mr Sun played a key middleman role in a deal that hit the headlines around the globe. The three had been linked together through an US$80 million fund, China Enterprise Capital (CEC).

More recently, the trio has decided to move in on a little-known luggage and handbag manufacturer whose chairman has been arrested for allegedly pilfering $20 million.

The executives have, however, declined to say if bigger plans are brewing for debt-ridden Wealthmark International (Holdings), with a takeover bid on the table for stakeholders.

CEC, through 80 per cent beneficially owned Orientelite Investments, in April agreed to buy a 75 per cent stake in the handbag firm for $4 million. This triggered a mandatory general offer, with investors being offered 2.67 cents per share, a 95.23 per cent discount to the stock's last closing price on April 11.