Japfa’s China-focused milk business, AustAsia Group or AustAsia Investment Holdings (AIH), has priced its shares to be issued under the global offering at HK$6.40 ($1.11) per share.
The offer price puts AustAsia’s market capitalisation at approximately HK$4.479 billion. This is assuming that the over-allotment option is not exercised, and the loan capitalisation and the issuance of new AustAsia shares in settlement of the share awards are completed.
Based on the offer price, the value of Japfa’s interest in AustAsia is at 23 cents per share.
The value of Japfa’s stake in its Indonesian-listed subsidiary, PT Japfa Tbk, is valued at 36 cents per share, based on PT Japfa Tbk’s closing price of IDR1,310 (11.36 cents) as at Dec 21.
“Together with the proposed listing, the proposed distribution is expected to unlock shareholder value as it creates a clearer investment proposition of the two business groups with listed market values which can be separately evaluated on their strategy, merits and risks,” says Japfa in its Dec 22 filing.
Shares in Japfa closed 1.5 cents higher or 2.78% up at 55.5 cents on Dec 21.
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