Changhong Jiahua Holdings: Monthly Update on Privatisation Proposal and Listing Withdrawal

Key Developments for Investors

• Privatisation Proposal by Hongtu Investment Co., Limited: There is an ongoing proposal to privatise Changhong Jiahua Holdings Limited via a scheme of arrangement under Section 99 of the Companies Act of Bermuda.
• Proposed Delisting: The plan includes the withdrawal of Changhong Jiahua Holdings Limited from the Hong Kong Stock Exchange.
• Progress of Regulatory Approvals:
  • Approval from Mianyang City SASAC has been satisfied.
  • Filings have been made to Sichuan Provincial Development and Reform Commission and Sichuan Provincial Department of Commerce.
  • Approval from the State Administration of Foreign Exchange (SAFE) or its local authorities is still outstanding.
• Pre-Conditions: The proposal is conditional upon obtaining all required regulatory approvals, registrations, filings, reports, and authorisations from the above authorities.
• Uncertainty Remains: Several pre-conditions remain outstanding as of the date of the announcement. The Offeror is actively working to fulfil these conditions, but there is no guarantee that the privatisation and delisting will proceed.

Implications and Potential Price-Sensitive Information

Investors and shareholders should note:

• The privatisation and withdrawal of listing may or may not be implemented, depending on the satisfaction of the remaining pre-conditions and all other conditions.
• If the scheme proceeds, minority shareholders may be required to sell their shares, and the company’s shares will no longer be traded on the Hong Kong Stock Exchange.
• Trading Alert: Ordinary shareholders and potential investors are advised to exercise caution when dealing in the company’s shares, given the uncertainty over the transaction’s completion.
• Any future announcements regarding the satisfaction of pre-conditions and the despatch of the Scheme Document could have a significant impact on the share price.

Corporate Governance and Board Responsibility

• The directors of both Hongtu Investment Co., Limited and Changhong Jiahua Holdings Limited have affirmed their responsibility for the accuracy and completeness of the information published in the announcement.
• The directors also confirm that all reasonable enquiries have been made to ensure the accuracy of the statements, and there are no omissions that would make the published information misleading.
• Executive and independent non-executive directors of Changhong Jiahua Holdings Limited are named for transparency and accountability.

Next Steps

• The Offeror will continue to pursue satisfaction of the outstanding pre-conditions.
• Further announcements will be made as appropriate in compliance with the Takeovers Code.

Important Warning

Shareholders and potential investors are strongly advised to seek professional advice if in doubt about their actions regarding the shares of Changhong Jiahua Holdings Limited.

Disclaimer: This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The proposed privatisation and withdrawal of listing are subject to regulatory and shareholder approvals and may not materialise as planned. Share price movements may occur based on new information or regulatory updates. Investors should exercise caution and consult their financial advisers before making any investment decisions.

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