[ET Net News Agency, 22 January 2018] Yue Yuen Industrial (00551) and Pou Sheng
International (03813) said Pou Chen Corporation proposes to take Pou Sheng private by way
of a scheme of arrangement.
The cancellation price of HK$2.03 per scheme share represents a a premium of about
31.82% over the closing price of HK$1.54 per Pou Sheng share. The cancellation price will
not be increased.
The proposal, as and when it is implemented, will involve Yue Yuen effectively disposing
of all its 62.41% interests in Pou Sheng in exchange for Pou Chen paying to Yue Yuen a
total of about HK$6,763 million. Yue Yuen intends to use virtually all the net proceeds
from the disposal to distribute a one-off special dividend to its shareholders, while the
rest of the net proceeds are expected to be used for general working capital purposes.
Upon the proposal becoming effective, Pou Sheng will apply to the Stock Exchange for the
withdrawal of the listing of its shares on the Stock Exchange.
Pou Chen is a controlling shareholder of Yue Yuen, indirectly holding about 49.99%
stake. Following the implementation of the proposal, Pou Chen intends that Pou Sheng will
continue to carry on its business of retailing of sportswear and distribution of licensed
products. Pou Chen intends to pursue various initiatives to adapt Pou Sheng to the
shifting market dynamics, so as to enable it to continue to be a leading sports retailer
in the PRC with great market scale and distribution potential. (HL)
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