Date
24 March 2017
CRE top executives are shown with some of the company's beverage products. CRE has agreed to a beefed up asset acquisition deal with its parent. Photo: HKEJ
CRE top executives are shown with some of the company's beverage products. CRE has agreed to a beefed up asset acquisition deal with its parent. Photo: HKEJ

CRH boosts acquisition deal with listed unit to HK$30 bln

China Resources (Holdings) Ltd. (CRH) is beefing up an acquisition deal for the non-beer assets of China Resources Enterprise Ltd. (CRE, 00291.HK), its Hong Kong-listed unit.

That values the transaction at HK$30 billion (US$3.87 billion), up from an initial consideration of HK$28 billion, according to the Hong Kong Economic Journal which cited a supplementary agreement.

CRH will pay for the deal with HK$14.5 billion in cash, up from an original offer of HK$13.5 billion. The remainder will be covered by a bill of exchange.   

The beefed up deal includes the acquisition cost of CRE’s non-beer business and up to HK$6.15 billion for 20 percent of CRE’s outstanding shares held by minority shareholders.

CRH is paying HK$12.30 for each of those shares, up 7 percent from HK$11.50 previoulsy, in CRE special dividends.

Including the previously announced offer of HK$12.70 per share, minority shareholders will receive up to HK$25 per share, a 64.5 percent premium to the stock’s April 2 closing price before the offer announcement.

Also, CRH agreed to extend a three-year shareholder loan of not more than HK$10 billion to CRE.

Analysts said the revised agreement could boost CRE’s remaining beverage business.

Translation by Vey Wong

[Chinese version中文版]

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