Courage Investment Group Faces Potential Takeover by China Mark Limited
In a significant development that could influence the stock market, China Mark Limited has announced a voluntary conditional general cash offer to acquire Courage Investment Group Limited. This move comes after China Mark, through Get Nice Securities Limited, acquired approximately 28.79% of Courage Investment’s total issued share capital.
China Mark plans to offer HK\$0.1094 per share, a price aligning closely with the acquisition price from the recent transaction with the Vendor. This offer represents various discounts compared to recent trading prices, such as an 8.83% discount to the last trading day’s closing price of HK\$0.12 per share, and a 13.72% discount to the average closing price of the previous five trading days.
Critical for shareholders to note is that the offer’s success hinges on acquiring over 50% of the voting rights of Courage Investment Group by the closing date. Failure to meet this condition will result in the offer lapsing, which could have significant implications for share values.
China Mark intends to maintain the group’s existing business operations while exploring potential strategic changes post-acquisition. This includes possible asset acquisitions, business restructurings, or fund-raising activities to strengthen long-term growth. Significant changes to the Board are anticipated, although no specific candidates have been identified yet.
The offer is open to shareholders with shares traded on the SGX-ST, although the Singapore Code on Takeovers and Mergers does not apply, given the primary listing is not in Singapore. Both Hong Kong and Singapore regulatory frameworks surrounding the offer have been outlined, with specific mention of stamp duties applicable to Hong Kong shareholders.
Shareholders are advised to exercise caution, as the offer is subject to specific conditions that, if unmet, could affect the company’s share price. Further details will be provided in the Composite Document, which will include recommendations from the Independent Board Committee and the Independent Financial Adviser.
The trading of shares on the Stock Exchange and SGX-ST is set to resume on 5 December 2024, following a halt pending this announcement’s release.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Shareholders and potential investors should consult with professional advisers before making investment decisions.
