Rimbaco Faces Mandatory Takeover Offer After 75% Stake Sale; Shares Slump 23%
Rimbaco Group Global (HKG:1953) became subject to a mandatory unconditional cash offer following a change in control, according to an April 24 Hong Kong bourse filing.Shares of the contractor services firm fell over 23% in Monday morning trade.The company said it was informed of the sale of 945 million shares, representing 75% of its issued share capital, at HK$0.167 per share, or about HK$157.5 million.The shares were sold by RBC Venture to Aureole Halo, the filing said.The offer price of HK$0.167 per share represents a discount of about 74.3% to the last closing price, the filing said.Upon completion of the transaction, Aureole Halo is required to make a mandatory unconditional cash offer for all remaining shares in Rimbaco at the same price of HK$0.167 per share.Rimbaco said an independent financial adviser will be appointed to assess whether the offer is fair and reasonable.