China Mark Limited’s Strategic Move: Courage Investment Group’s Takeover Offer
In a significant development, China Mark Limited has launched a voluntary conditional general cash offer to acquire the remaining shares of Courage Investment Group Limited that it does not already own. This strategic move comes after China Mark Limited, represented by Get Nice Securities Limited, acquired a substantial 28.79% stake in Courage Investment Group from Success United Development Limited, a vendor indirectly owned by Mr. Suen Cho Hung, Paul.
The offer price is set at HK\$0.1094 per share, closely mirroring the purchase price of HK\$0.10932 per share in the recent acquisition. The total consideration for this acquisition amounts to approximately HK\$34,543,766.59, funded entirely from China Mark’s internal resources. The offer will be successful if acceptances, combined with shares already held, grant China Mark more than 50% of the voting rights in Courage Investment Group.
Key points of interest for shareholders include the conditional nature of the offer, which could affect the share price depending on its success. The offer represents a discount to recent trading prices, with a notable 8.83% discount to the last closing price of HK\$0.12 and a substantial 73.66% discount to the company’s unaudited net asset value per share as of June 30, 2024.
Shareholders should be aware that while the offer is open to those holding shares traded on the SGX-ST, the Singapore Code on Takeovers and Mergers does not apply, given Courage Investment Group’s primary listing is not on the SGX-ST. Importantly, China Mark has expressed intentions to maintain the company’s listing status on both the Hong Kong Stock Exchange and SGX-ST post-offer.
The independent board committee, consisting of directors with no conflict of interest in the offer, alongside Nuada Limited, the appointed independent financial adviser, will provide recommendations to shareholders on the offer’s fairness and reasonableness.
China Mark Limited, wholly owned by Ms. Liu Sainan, aims to review the Group’s operations and business strategy post-acquisition, possibly exploring new business opportunities while maintaining the existing business framework. However, there are no immediate plans for significant changes in employment or asset disposition.
Shareholders are advised to exercise caution and seek professional advice if necessary, as the offer’s outcome remains uncertain and could impact the company’s share value significantly.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Shareholders and potential investors should consult with their financial advisors before making any investment decisions based on this information.
