IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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<p><a href="https://www.smartkarma.com/entities/golden-throat-holdings-group" target="_blank" data-smartkarma-citation="entities:22664:1" rel="noopener">Golden Throat Holdings (6896 HK)</a> is a leading manufacturer of lozenges in China. After market close on Thursday, it announced a privatisation offer by way of a scheme of arrangement from Aureli Investments. The offeror will offer HK$2.80 cash per scheme share. The bid represents a premium of 55.6% over the closing price of HK$1.80 per share on the undisturbed date (4 August 2021 prior to irregular price movements) and a premium of 25.6% over the closing price of HK$2.23 per share on the last trading date (5 August 2021 prior to the trading halt). </p><p>On 10 August, Golden Throat issued a positive profit alert. The 1H21 net profit is expected to be around RMB80.0 million in comparison to the 1H20 net profit of RMB15.8 million. The profit increase was due to a recovery in 1H21 sales to the pre-COVID-19 pandemic levels. </p><div class="content-highlight"><p>The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. As disinterested scheme shareholders represent 189.3 million shares or 25.60% of shares outstanding, the 10% blocking stake is 18.9 million shares or 2.56% of shares outstanding. No shareholder holds a blocking stake. Overall, we think the offer price is attractive and that the privatisation bid will be successful. </p></div>

Golden Throat Holdings (6896 HK) is a leading manufacturer of lozenges in China. After market close on Thursday, it announced a privatisation offer by way of a scheme of arrangement from Aureli Investments. The offeror will offer HK$2.80 cash per scheme share. The bid represents a premium of 55.6% over the closing price of HK$1.80 per share on the undisturbed date (4 August 2021 prior to irregular price movements) and a premium of 25.6% over the closing price of HK$2.23 per share on the last trading date (5 August 2021 prior to the trading halt). On 10 August, Golden Throat issued a positive profit alert. The 1H21 net profit is expected to be around RMB80.0 million in comparison to the 1H20 net profit of RMB15.8 million. The profit increase was due to a recovery in 1H21 sales to the pre-COVID-19 pandemic levels. The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. As disinterested scheme shareholders represent 189.3 million shares or 25.60% of shares outstanding, the 10% blocking stake is 18.9 million shares or 2.56% of shares outstanding. No shareholder holds a blocking stake. Overall, we think the offer price is attractive and that the privatisation bid will be successful. 

Hong Kong

Golden Throat Holdings Group Company Limited manufactures throat lozenges.  The Company offers its products throughout China.

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Golden Throat Holdings (6896 HK)

Golden Throat’s Privatisation Bid

Golden Throat announced a privatisation offer at HK$2.80 cash per scheme share, a 25.6% premium to the last close. We think the offer price is...

Arun George

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