Shares of Hanny Holdings, a loss-making investment holding firm headed by dealmaker Charles Chan Kwok-keung, surged 6.92 per cent yesterday after parent ITC Corp proposed to buy out all its independent shareholders for HK$622.8 million.
ITC, which holds about 24.16 per cent of Hanny through wholly owned Famex Investment, said it agreed to buy a 9.11 per cent stake or 22.81 million shares of Hanny from independent shareholder Hoffman Ma Ho-man for HK$86.69 million, or HK$3.80 per share.
The purchase will boost ITC's stake in Hanny to 33.27 per cent, above the 30 per cent threshold under the listing rule that requires the company to make a mandatory offer for all the shares it does not own at the same price.
The offer price represents a discount of about 51.78 per cent to Hanny's net asset value of about HK$7.88 per share as at the end of March.
It also represents a premium of about 7.65 per cent to the stock's HK$3.53 price on August 17 before it was suspended from trading.
ITC will also offer HK$6.333 for each HK$15 face value, or HK$268.1 million in total, to buy back the 2 per cent Hanny convertible bonds due 2011 with a face value of HK$770.8 million.