Asia Fashion

Asia Fashion: Has proposed to acquire China Construction Material Holdings (CCMH) in a deal worth Rmb100m, which implies 78% of the NTA per share of CCMH and 3.3x FY12 P/E. Half of the consideration will be satisfied via the issue of new Asia Fashion shares based on the 60-day historical VWAP, and the remaining will be paid in cash. Asia Fashion intends to fund the acquisition partly through internal resources and partly from the proceeds of the placement of 100m shares previously announced Aug ’13. Based on FY12 figures, post acquisition, Asia Fashion’s loss per share will be reduced to Rmb 8.85cts from Rmb 17.43cts, while its NTA per share will be reduced to Rmb0.743 from Rmb0.768. CCMH mainly manufactures and sells wood boards and aluminium plates used in buildings