Lifestyle China Group Ltd. is making headlines after its chairman, Lau Luen Hung, raised his privatization offer. The new price is HK$0.98 per share, which is 7.3% higher than the original offer of HK$0.913. Lau emphasized that this new price is final.
Last month, Lau first proposed to take the company private. His initial offer was a premium of 21.7% over the last trading price of HK$0.75 before shares were suspended. Lau and his partners own almost 75% of the company’s shares, meaning they need to buy out minority shareholders at a total cost of around HK$340 million (or about $44 million).
Despite the increase, the new offer still falls short when compared to Lifestyle China’s net asset value of HK$6.981 per share as of June last year. This new amount is about 86% below that value, raising questions among investors.
The market had anticipated this move, pushing the stock price above the initial offer. However, the revised price wasn’t enough to satisfy expectations. Following the news, Lifestyle China’s stock opened down significantly, seeing a 15.3% drop to HK$0.83.
Source link
retail,Lifestyle China,department store
