Dickson Poon plans to take Dickson Concepts private at 50pc premium

Dickson Concepts (0113) said its chairman Dickson Poon has proposed to take the firm private at an over 50 percent premium.

Poon is offering HK$7.2 apiece, 50.63 percent over the latest closing price, to buy 152.58 million shares he does not own in the firm, according to a filing on Tuesday. 

The price represents a 20.44 percent discount to net asset value as of the end of September 2024. 

The total consideration of the privatization deal is nearly HK$1.1 billion. 

Dickson said its share price has been consistently underperforming and trading liquidity is low, meaning its ability to raise capital through the equity capital markets is limited, and its listing status no longer provides a viable avenue for fundraising to support the group’s business development.

The firm believes the proposal offers shareholders an attractive cash premium to exit their investment and also enable the group to have greater flexibility to make strategic investment decisions.

Dickson also said the outlook for Hong Kong luxury retailing is “gloomy”.

STAFF REPORTER