On August 6th, Gelonhui announced that the board of directors of HP Living Tech (01682.HK) was informed by the offeror Jiaoyang International Limited on August 6th, 2024 that the offeror plans to make a voluntary conditional full cash offer in accordance with the takeover code after purchasing Mr. Wu's shares (i.e. the 0.104 billion shares of Mr. Wu's holdings immediately before the purchase) at HKD 0.08 per share. The offer includes purchasing all the outstanding offer shares; and canceling all outstanding stock option rights.
Jinlifeng Securities (the representative of the offeror) will make a voluntary conditional full cash offer in accordance with the takeover code. The offer price is HKD 0.08 per share of the offer shares, which is about 20.00% lower than the closing price of HKD 0.1000 per share on the Stock Exchange on August 5.
The offeror is a limited company registered in the British Virgin Islands. Mr. Wu Lianghao owns 50% of the equity and Mr. Yu Xueming owns the other 50%. The offeror's main business is investment holding.
Mr. Wu has extensive experience in garment processing and manufacturing and has been an investor in the company since 2017. However, the company's stock price has been declining in the long term, and the annual performance of the company has continued to record net losses. Mr. Wu, as a major shareholder since 2017, is disappointed with the current management performance. Therefore, based on his direct experience in garment production and manufacturing, Mr. Wu, along with his business acquaintance Mr. Yu, has decided to further invest in the company's business by seeking controlling equity. They aim to use their business network to tap the potential of the company and expand its investment scope.
The offeror is optimistic about the future prospects of the company, and the offer reflects its confidence and commitment to the company. The purpose of the offer is to increase the offeror's shareholding in the company. If the offer becomes unconditional, the offeror will become the controlling shareholder of the company. This will enable mr. wu lianghao and mr. yu xueming (both concert parties of the offeror) to play a leading role in the future development of the group, thereby creating more long-term value for shareholders.
The offeror intends to keep the company listed on the Stock Exchange after the offer deadline. The offeror's directors will undertake appropriate steps to ensure that there is sufficient public shareholding in the company.