Financial News
Written by: Hu Xueneng, Zhai Ziqian, Lin Leqian
2020-06-16 10:52
Date of last update: 2020-06-16 14:41Centennial British-funded foreign trade association Defeng (0020) today (16th) held legal affairs meeting and annual general meeting, and voted on privatization.
Chen Zhongxiang, the convener of the Investor Rights Concern Group attending the shareholders' meeting, said that he is Lifeng (privatized) and Wheelock's minority shareholder. He believes that Wheelock's privatization arrangement is reasonable and shows that he voted in favor. He put it bluntly, "Lifeng has no choice but Huidefeng has choice".
He stated that he only holds Wheelock's stock for about one or two years, and the purchase price is less than 50 yuan. He believes that small shareholders have bought stocks in the past more than ten years, and small shareholders can choose to sell in the market or accept the plan. Anyone can make a profit. In contrast, Chen Zhongxiang called Li & Fung "an unscrupulous company and unscrupulous major shareholder" and privatized it at a historically low price, which caused minority shareholders to erode and hurt minority shareholders. He had complained to Li & Fung.
Chen Zhongxiang also revealed that he asked the management three questions at the meeting, including whether to lay off staff after the completion of privatization, Wu Zongquan's role in the group in the future, and why privatization was conducted by cash plus stock, but the management said it was inconvenient to disclose.
Wheelock's minority shareholder Chen Zhongxiang said it has been one or two years of buying Wheelock's stock. (Photo by Hu Xueneng)
The premium is "shrinking" compared to when it was announced
On February 27 this year, the Wu Guangzheng family, the majority shareholder holding nearly 70% of Wheelock’s equity, proposed to privatize the group at a price of 1 share of Wharf and 1 share of Wharf home plus 12 yuan in cash. Based on yesterday's closing price, the value per share was 61.44 yuan, which was 59.3 yuan higher than the market closing price of Wheelock on the same day, and the premium was only 3.6%; if compared with the net asset value per share of Wheelock at the end of last year, there was a 53% discount .
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