Hsu Fu Chi (HFC)

Hsu Fu Chi (HFC): to resume trading at 9am this morning.
Nestle proposes to acquire an aggregate 60% interest in HFC at $4.35/sh (9% premium to last close), subject to various terms.
Nestle will purchase
i) 43.5% by scheme of arrangement,
ii) 16.5% from Individual Shareholders (comprising the founders/ directors of the Co.). The remaining 40% of the Co. will be owned indirectly by the Individual Shareholders...

The transaction was meant to create a long term partnership btwn Nestle and the Individual Sh/h, with a view to delist the Co. from SGX.
Significant sh/h, Arisaig Asia, Winmoore and Star Candy, which together hold a combined 25.4% of shares out, have given their irrevocable undertaking to vote in favor of, and to accept Nestle’s offer.
Credit Suisse is the financial advisor to Nestle...

HFC share price has risen consistently at an almost 45 deg angle since bottoming out in Nov ’08, and is now ~7x above the $0.60 low. At offer price of $4.35, HFC trades at 25.6x fwd P/E, close to Want Want’s (151 HK) 28.7x fwd P/E.