Chong Hing Bank (1111 HK): Scheme Doc Out. IFA Says Fair
On the 18 May, Yue Xiu (the investment arm of the Guangzhou municipal government) made an Offer, by way of a Scheme, for Chong Hing Bank (1111 HK) shares not owned, at HK$20.80/share, a 51.2% premium to last close, and a 97% premium to the day preceding the last trading day. The Cancellation Price, which was a 10.1% discount to the NAV, would NOT be increased.
Standard Scheme conditions apply. Chong Hing is Hong Kong incorporated, therefore there is no headcount test.
The Scheme Document is now out. The Scheme Meeting will be held on the 30 August with expected payment (assuming the Scheme resolutions are approved by independent shareholders) on the 7 October.
The IFA considers the Offer to be fair and reasonable, although that report covered the bare minimum.
More below the fold.
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