KVB Kunlun Shares to Resume Trading following $100 Million Acquisition

In a joint announcement made today by the Hong Kong broker and the Chinese Investment bank that bought 60% of

kvb sqThe Hong Kong broker KVB Kunlun Financial Group Ltd (HKG:8077) (KVB) and the Chinese Investment bank that bought 60% of its shares, CITIC Securities, made a joint announcement today revealing more details on the deal and the firm’s way forward.

According to the Share Purchase Agreement, CITIC Securities has conditionally agreed to acquire 1,200,000,000 KVB Shares, for a total cost of HK$780 million (USD$100.5 million), equivalent to HK$0.65 per share. This represent 60% of the 2,000,000,000 KVB shares in issue of as at the date of the announcement.

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It was also announced that immediately following completion of the deal, CITIC Securities and parties acting in concert with it will be required to make an unconditional mandatory cash offer to acquire all the issued KVB Shares (other than those KVB Shares already owned and the 300,000,000 KVB Shares to be retained by the broker upon completion) and to cancel all the outstanding KVB Options in the period prior to the close of the Share Offer.

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The companies said that the offers comprising the share offer and the option offer, when made, will be unconditional in all respects. For each share CITIC offers HK$0.65 in cash and for each option the bank is willing to pay HK$0.236 in cash.

Trading in the KVB shares on the Stock Exchange was suspended with effect from 30 January 2015 at the request of KVB Kunlun. Now the two firm reveal that an application has been made by KVB Kunlun to the Hong Kong Stock Exchange for resumption of trading in the KVB Shares with effect from Friday, 27 February 2015.

Investors will likely take notice that the HK$0.65 per share CITIC Securities paid is considerably less than the market value of KVB shares on the Hong Kong Exchange before trading was suspended.

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