Diamond State Holdings is in the process of finalising the contents of the composite document and accompanying forms of acceptance to be despatched to shareholders for the mandatory public takeover of Imperium Group Global.
In January, the company bought 62.5 per cent of the Cayman Islands-incorporated and Hong Kong-based home furnishing products manufacturer from Power Ocean for HKD 186.58 million (USD 24.06 million).
The acquisition triggered a mandatory offer that values Imperium at a total HKD 298.69 million and the remaining 37.5 per cent balance at HKD 112.11 million.
At HKD 1.04 apiece in cash, the offer equated to a discount of a fifth to the close of HKD 1.30 apiece on 23rd January.
It also represents a premium of 420.0 per cent over the unaudited consolidated net asset value attributable to shareholders of HKD 0.20 per share, as at 30th June 2019.
Diamond is a British Virgin Islands-incorporated investment holding company fully controlled by Cheng Ting Kong, who is chairman and director of Sun International and the owner of half of Power Ocean.
Imperium is engaged in the manufacture and sale of furnishings, home products and accessories primarily used in kitchens and bathrooms, though it is also involved in property investment, money lending and mobile games.
The company generated revenue of HKD 121.39 million in the six months ended 30th June 2019 (H1 2018: HKD 131.31 million).
It incurred a net loss attributable to shareholders of HKD 37.40 million (H1 2018: HKD 13.28 million loss).
Zephyr, the M&A database published by Bureau van Dijk, shows 148 public takeovers have been announced in 2020 to date.
The largest is the USD 30.03 billion acquisition of Willis Towers Watson by Aon, which is more than double the second-biggest of the year, which is the USD 13.00 billion purchase of E*Trade by Morgan Stanley.
© Zephus Ltd