00015.HK announced that on June 24, 2020, the offeror Mingcheng International Co., Ltd. requested the board of directors to submit the proposal to the planned shareholders to privatize the company in the form of an agreement plan in accordance with Article 99 of the Bermuda companies Law. The write-off price of each Plan share is HK $0.90, which represents a premium of approximately 80.0% over the closing price of HK $0.500 per share quoted by the Stock Exchange on the last trading day. The write-off price will not be increased and the offeror does not reserve the right to increase the write-off price.
Under the share option offer, the Offeror will propose to the option holders (except Mr. Wei) to write off each outstanding share option held by them at a perspective price. The perspective price of the outstanding share options is HK $0.374 per share.
After the scheme comes into effect, all scheme shares will be cancelled and the stock certificate of the scheme shares will no longer have the effect of a title document or certificate. The company will apply to the Stock Exchange to revoke the listing status of the shares on the Stock Exchange so that the above revocation will take effect immediately after the effective date.
The offeror is a limited company incorporated in Hong Kong and is beneficially owned by Mr. Wei Zhenxiong, the controlling shareholder, executive director and chairman of the company. Mr. Wei is the sole director of the offeror. The offeror is an investment holding company with 235 million shares, accounting for about 13.96% of the issued share capital of the company as at the date of the announcement.
The company said that the liquidity of shares has been low for a long time, making it difficult for shareholders to sell a large number of shares in the market without affecting the price of the shares. The listing of the company involves administrative, compliance and other costs and expenses related to listing. If the proposal is successful, such costs and expenses will be eliminated, thereby enabling the offeror and the company to allocate more resources to develop the Group's business. The purpose of the proposal is to provide an opportunity for scheme shareholders and option holders to withdraw and realize their investments in the company at a premium to receive cash.
In addition, the company's shares will resume trading on July 3, 2020.