Metro ups stake in Top Spring Int'l

HK$528.7m acquisition raises holding close to group's target of at least 20 per cent

Published Fri, Dec 6, 2013 · 10:00 PM

Singapore

DEPARTMENT store operator Metro Holdings is deepening its investment into the property sector. The group announced yesterday that it is acquiring a 13.66 per cent stake in Hong Kong listed Chinese developer Top Spring International Holdings (TSI) for HK$528.7 million (S$85.7 million), and plans to further raise its stake in TSI going forward.

The cash transaction translates into Metro paying HK$3.35 for each TSI share it is acquiring, compared with the HK$3.07 that TSI last traded at on Dec 5 - a day before the deal was announced. Metro said the price took into account "a price premium for a significant single shareholding block". The stake, to be sold by some minority shareholders, will lift Metro's current 6.11 per cent holding in Top Spring to 19.77 per cent.

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