Passion Holdings: Trading of Passion shares, which have been halted since Monday, resumes today.
Received a $101.4m, or $0.26/sh cash privatisation offer from Decorative Arts (DA), an invmt hldg firm managed by a unit of Citigrp's alternative invmt practice. The offer price is at a 24% premium over the last traded close of $0.21, and values the co at 4.7x P/E, 1.1x P/B…
DA plans to delist Passion once it is in control of >90% of the co. Passion's CEO and exec chairman, with a collective 58.5% stake, have irrevocably undertaken to accept the offer.
Passion, which produces and sells a range of handicrafts and furnishings in the PRC, was listed in 2009 at an offer price of $0.25. This privatization offer follows closely on the back of Sinomem’s, and is a sign of institutional investors’ confidence in the S-Chip sector, despite the recent accounting irregularities at Hongwei and Hongxing.
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