Hong Kong-listed luxury goods company Dickson Concepts has received a privatisation offer from tycoon Dickson Poon in a deal worth approximately HK$1.1 billion (US$141.6 million).
Poon, who currently owns 60.5 per cent of the company, seeks to acquire the remaining stake for HK$7.20 per share via Bestcity Assets Limited, a wholly-owned subsidiary of Dickson Investment Holding.
The price is higher than the closing share prices over the last 10 years and represents a premium of approximately 50.63 per cent over the closing price on April 23 (the last trading date), according to the joint-statement by the two parties.
The offer requested to carry out the privatisation by way of a scheme of arrangement under section 99 of the Companies Act.
The scheme will involve the cancellation of the scheme shares and the delisting of the shares on The Stock Exchange of Hong Kong.
The directors of Dickson Concepts said the proposal is “fair and reasonable and in the interests of the shareholders as a whole”.
Members of the independent board committee will provide their views after considering the advice of the independent financial adviser.
Poon, who is executive chairman, and his son Pearson Poon, who is an executive director and COO, have abstained from voting.
The move comes after Dickson Concepts reported a 40.1 per cent decline in profit for the six months ended September 30. The company cited weak consumer sentiment and expected the trend to continue in the near term.
