Guocoleisure Holdings, a wholly-owned subsidiary of Guoco Group Limited (GGL) has made a voluntary conditional cash offer of 70 cents per share for all the issued ordinary shares in the capital of GL Limited on Jan 15.
The share price represents a 25% premium over the last transacted price of 56 cents per share on Jan 14.
It also represents a 28.2%, 33.3%, 28% and 9.5% over the volume weighted average price (VWAP) per share for the one-, three-, six- and 12-month periods respectively, up to and including the last trading day.
The offer price implies a price to net asset value multiple (P/NAV) of 0.73 times, which exceeds GL Limited’s historical averages.
The P/NAV multiple represents a premium of 19.7%, 9.0% and 5.8% to the historical one-, three- and five-year average P/NAV multiple of the shares.
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GL Limited is a special purpose vehicle incorporated in the Cayman Islands on Dec 23, 2020, and is a private exempted company limited by shares.
GGL has an interest in 969,088,334 shares, representing 70.84% of the shares held directly by GuocoLeisure Assets Limited (GAL), a wholly-owned subsidiary of GGL.
As at Jan 15, the directors of GL Limited are Cynthia Cheng and Wong Sau Kwong.
According to the group, the privatisation represents an opportunity for shareholders who may find it “difficult to exit their investment” in the company due to the low trading liquidity.
As at 12.50pm, shares in GL Limited are trading flat at 56 cents.
