Shares in New World TMT, the information technology subsidiary of New World Development, surged 71.43 per cent to 72 cents yesterday after its parent announced plans to privatise the company.
New World offered 75 cents a share for the 435.6 million outstanding TMT shares it does not own, representing 46 per cent of the company.
The offer is the equivalent to the net asset value (NAV) disclosed in the annual report this year. It values the issued share capital of TMT at $714.1 million, with the buyout costing $326.7 million.
New World also stressed in its statement to the stock exchange that the offer price would not change. About 18.5 million TMT shares changed hands yesterday.
'From the appearance, the mark-up of the privatisation price to NAV seems to be fair. However, we will need more details on the pending court case with PrediWave,' said an analyst.
He was referring to the lawsuits filed in the Superior Court of California by New World and PrediWave claiming financial losses against each other.