PLAYMATES International is being turned into a property company in a $1.378 billion paper transaction that spins off the toy company and adds Chan family property assets to the parent's investment portfolio.
Minority shareholders will end up with consolidated shares in the transformed Playmates International and new shares in Playmates Toys Holdings, which is expected to be listed on the exchange through an introduction.
The controlling shareholders in the transaction will yield a paper profit of $608 million from selling their property portfolio to Playmates International, according to the transaction document.
Under the terms of the deal this will be taken in shares and not cash.
The deal involves the acquisition by Playmates (BVI), a wholly owned subsidiary of Playmates, of the entire issued share capital of Playmates Properties International from Playmates Investments, a company owning 45.5 per cent of Playmates International with beneficial ownership by the Chan family.
It proposes a distribution of all Playmates Toys Holdings shares, representing the entire issued share capital of the company, to the shareholders of Playmates International by way of a special dividend.
With the listing of Playmates Toys, Playmates International is expected to change its name to Playmates Properties.
