China Agri-Industries to be taken private for up to $1.2 billion

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEC3B0CQ_M.jpg
© Reuters. China Agri-Industries to be taken private for up to $1.2 billion© Reuters. China Agri-Industries to be taken private for up to $1.2 billion

HONG KONG (Reuters) – China Agri-Industries Holdings Ltd’s (HK:) parent will take the company private in a deal worth up to HK$9.17 billion ($1.2 billion), according to a filing published on Thursday.

The cancellation price was HK$4.25, the trading arm of Chinese state-owned food group COFCO said, which is 34.1% higher than the last closing price.

Shares of the company opened up 27% after they resumed trading on Thursday. They have been suspended since Monday.

If no outstanding share options were exercised, the deal size would be lowered to HK$8.9 billion, the filing said.

The reason for the privatization was that the underperformance of the company’s share price had restricted its ability to raise funds from the capital market to finance its business development.

The underperformance was due to uncertainty over the company’s development brought about by the slowdown of global economic growth, trade tensions and heightening of geopolitical risks.

China Agri-Industries’s parent said it intended to finance the entire take-private plan with either internal cash resources or other financing, or a combination of both.

CICC is the financial adviser.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.