SINGAPORE (Apr 3): Ying Li International Real Estate, the Chongqing-based property developer, has received a 14 cents cash offer from a subsidiary of Hongkong-listed investment holding company China Everbright for all the shares it does not own.
The offer values Ying Li at $358 million given the company has a share capital of 2.56 million shares as at Wednesday.
The mandatory general offer made through State Alpha was triggered following the acquisition of a 30% stake in Ying Li by the offeror from Newest Luck Holdings, which brings the total stake owned by the offeror and parties in concert to 58.91%.
The 14 cents offer is 1.4% higher than the last transacted price of 13.8 cents on Tuesday and 5.9% higher than the 13.2 cents VWAP of Ying Li shares for the 1-month period prior to and including the last transacted date. The offer price is also 66.1% below Ying Li’s NAV of 41.3 cents as at Dec 31 2018.
China Everbright intends to maintain the listing status of Ying Li and says it will be in a better position to improve the performance of the Ying Li and support its strategy and growth plans over the medium to long term by leveraging on its expertise, execution capabilities, existing network and strong relationships with Chongqing authorities.
The acquisition is also expected to improve the profile of the company in the equity and debt capital markets with China Everbright indirectly owning a majority of the shares.
China Everbright says it may undertake a strategic and operational review of the organisation, business and operations of the company with a view to realise synergies and growth potential This may involve the disposal or cessation of under-performing businesses and assets and the redeployment of certain employees of the company and its subsidiaries.
DBS is the financial adviser to the offeror.
