DCH to be privatized

Business | Avery Chen 21 Oct 2019

CITIC Pacific is to privatize Dah Chong Hong (1828) at a cost HK$3.02 billion.

Trading of DCH resumes today after halting on October 15.

The company set the cancellation price at HK$3.70, 37.55 percent more the closing price of HK$2.69 per share on its last trading date, involving 816.77 million scheme shares in issue.

Re-engineering its businesses is crucial if DCH is to deliver long-term growth and remain competitive, which will require significant investment over multiple years, the company said.

It added that given the shares are trading at a discount to the consolidated net asset value of the company since June 2015, the listed status of DCH no longer offers a source of funding to develop its businesses.

CITIC Pacific said DCH remains an important business for the company, and it will have full control over its strategy and more flexibility to manage its businesses.

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