Chong Hing Bank to go private

Yue Xiu Enterprises plans to take Chong Hing Bank (1111) private at HK$20.8 a share for a total of HK$5.1 billion.

The price represents a premium of about 51.2 percent over the closing price of HK$13.76 a share on May 6, the last trading day.

It was a premium of about 97 percent over the closing price of HK$10.56 a share on May 5, the last full trading day.

Yue Xiu Enterprises will not increase the cancellation price and does not reserve the right to do so.

Yue Xiu Enterprises held 729 million shares, representing a stake of 74.97 percent. The listing of the bank will be withdrawn.

The final dividend approved will be paid on June 8 to shareholders and will not be deducted from the cancellation price.

The share price surged around 30 percent to HK$13.76 before it halted trading on the morning of May 6, pending the release of an inside information announcement.