CABLE Broadband (1097), the controlling shareholder of Yongsheng, which holds 43.2% of the shares, has changed hands.
According to a CATV announcement, one of Yongsheng’s shareholders, Zheng Jiachun (the offeror), respectively signed sales shares and sales loan agreements with the other two shareholders of the company, namely Far East Development (0035) Chairman Qiu Dachang and R&F Properties (2777) Chairman Li Silian. For the acquisition of the equity of Yongsheng in the hands of the two, the total consideration was 148 million yuan and 60.9 million yuan, for a total of about 209 million yuan.
Zheng Jiachun himself is the single largest shareholder of Yongsheng, holding 31.5%. The remaining shareholders include Qiu Dachang (24.5%), Li Silian (16%), Chow Tai Fook Enterprise (14%) and Zhao Linghuan (14%).
After the completion of the transaction, Qiu Dachang and Li Silian left the market completely, and Zheng Jiachun purchased 40.5% equity in Yongsheng from the two, and his shareholding rose to 72%. If Chow Tai Fook Enterprise holds shares, he will hold a total of 86% equity in Yongsheng .
As the transaction is completed, the offeror will obtain the legal controlling rights of Yongsheng, and even Yongsheng holds the controlling interest of Cable.
Therefore, after the transaction is completed, the offeror must make a conditional mandatory general offer for all issued shares of the company in accordance with Note 8 of Rule 26.1 of the Takeovers Code and Application Note 19 of the Takeovers Code. The offer price per share is RMB 0.0264. The bidder will not increase The share offer price.
Cable Broadband will resume trading tomorrow.
