THE final chapter in the row between Francis Yuen Tin-fan and Choi Sai-leung unfolded last night with the announcement that a key option entitlement was to be exercised. Under the option, Mr Choi agreed to buy 156.1 million shares, representing 49.07 per cent of the issued share capital of Seapower International Holdings, for $515 million. These shares were being placed with institutional and private investors through New China Hong Kong Corporate Finance at $3.30 a share, Seapower said. Li Ka-shing, Larry Yung Chi-kin, Tien Fung Investments and Kee Shing Holdings exercised their option to sell their shares and warrants to Mr Choi yesterday. It is expected that following the completion of the deal, Mr Yuen, Owen Leung Chung-ping and Richard Wong Yue-chim would resign as directors of the company. Their resignation was not expected to have a material effect on the business or the operations of the company nor would there be any material change in the management. As the option shares would be acquired by investors who were independent and not acting in concert with Mr Choi, and as Mr Choi's shareholding would remain the same following the exercise of the option, Mr Choi anticipated that he would not be required to make a general offer under the deal. The executive under the Code on Takeovers and Mergers will carry out a review of the independence of the buyers of the option shares.
