China Kangda Food's chairman and others rid 69.18% stake at HK$1.34/shr
DUAL-listed China Kangda Food Company said six of its shareholders and Japan-incorporated Zensho Holdings have agreed to sell an aggregate of 299.52 million shares, representing a 69.18 per cent stake, in the company for HK$401.35 million.
The sale of China Kangda - a company involved in the breeding and sale of livestock, poultry and rabbits - to China Tian Yuan Manganese translates to HK$1.34 a share and values the company at HK$580.15 million.
At HK$1.34 a share, the sale price is at a 44.63 per cent discount to the closing price of HK$2.42 a share on the Hong Kong Stock Exchange on April 21, 2017, the last trading day.
Amongst the six shareholders who rid their stakes was China Kangda Food's chairman, Gao Sishi, who owned a 38.51 per cent stake. The other sellers included Gao Yanxu, an executive director, and Zhang Qi, a non-executive director, of the company.
China Tian Yuan Manganese is required to make a mandatory unconditional cash offer for all the issued shares. As of Tuesday, China Kangda Food has 432.95 million shares in issue.
China Tian Yuan Manganese is owned by China's Ningxia Tianyuan Manganese Industry, which is 99.62 per cent held by Jia Tianjiang. Ningxia Tianyuan was ranked 375th in the list of Top 500 Enterprises of China in 2015 issued by China Enterprise Confederation with a total revenue of 32.6 billion yuan in 2015.
It intends to maintain the listing status of China Kangda Food on both the Hong Kong and Singapore stock exchanges.
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