Retailer and department store operator Lifestyle China Group Ltd. (2136), declared on Thursday that its chairman and principal shareholder Lau Luen Hung has increased his offer to privatize the firm by 7.3%, raising it from an earlier HK$0.913 per share to HK$0.98, while emphasizing that the revised offer price is conclusive.
Last month, Lau initially suggested privatizing Lifestyle China, with the earlier price of HK$0.913 indicating a 21.7% premium over the stock’s final trading price of HK$0.75 before shares were halted. He and others involved in the bid collectively possess nearly 75% of the company’s shares, implying that procuring shares from other minority shareholders would cost nearly HK$340 million ($44 million).
As of the conclusion of June last year, Lifestyle China’s net asset value per share was HK$6.981. Consequently, even after the increased buyout proposal, the new figure remained 86% lower than the company’s net asset value.
Lau’s move to elevate the offer price was anticipated, previously leading to a rise in the stock price above the initial privatization proposal. However, the newly adjusted price matched Thursday’s closing figure, which fell short of market expectations. Consequently, Lifestyle China opened significantly lower by 15.3% at HK$0.83.
By Lau Chi Hang
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