Novo's controlling shareholder makes mandatory takeover offer for group

CHINESE steel company Novo Group said its new controlling shareholder is making a mandatory takeover offer for the group at HK$3.755 per share in cash.

Golden Star Group, owned by an investment holding firm solely owned by Zhu Jun, an executive director and chairman of e-commerce company GNet Group plc, holds a 54.87 per cent stake in the group after its acquisition of 93.72 million shares at HK$3.755 apiece was completed on Oct 5.

An independent board committee comprising all three independent non-executive directors has been set up to make a recommendation to shareholders as to whether the offer is fair and reasonable.

Independent financial advisers will be appointed both in Hong Kong and Singapore to advise the independent board committee as to whether the offer is fair and reasonable.

Following the close of the offer, the offeror intends that the group will continue its principal business and maintain the listing status of Novo in Hong Kong and Singapore. But it will conduct a review of the business activities and assets of the group for the purpose of developing a strategic business plan for the group.

Novo executive director and chairman Dicky Yu Wing Keung and independent director Lawrence Tse To Chung have tendered their resignations and are stepping down with effect from the first closing date of the offer on Nov 27.

The offeror has nominated Mr Zhu as an executive director and his appointment has been approved by the board.