KVB Kunlun and Chinese company CITIC Securities announced earlier today that they had completed the transaction announced in February this year, where the latter bought almost 60% of the outstanding shares of the publicly listed Honk Kong-based broker for $100 million (HK$780 million).
As per the agreement, all outstanding options on the shares of KVB Kunlun have been cancelled.
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The completion took place on the 29 th of May, 2015, and according to the the share purchase agreement, CITIC bought 1,200,000,000 shares of KVB Kunlun. Now that the acquisition has been formally completed, the Chinese company will have to make an unconditional mandatory general cash offer for all the issued KVB shares.
The current float of the company is trading at around HK$1.73, which is about two and a half times higher than prior to the publication of CITIC’s letter of intent (LOI) to buy the shares.
After volatility returned to the foreign exchange markets in September last year, the earnings of KVB Kunlun shot through the roof. The firm reported record numbers for the second half of 2014, and if other firms are any indication, its first and second quarters shouldn’t fall far behind.