Founder of Hong Kong fashion retailer I.T makes offer to take … – Reuters

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HONG KONG (Reuters) – Hong Kong fashion retailer I.T Ltd said on Sunday its founder and chairman Sham Kar Wai has teamed up with private equity group CVC to make an offer to take the company private for HK$1.305 billion ($168.37 million).
The consortium is offering HK$3 per share, representing a 54.6% premium over the last closing price of HK$1.94 before trading in I.T’s shares was suspended on November 30, the company said in a filing to the Hong Kong stock exchange.
I.T said it was planning to transform the business amid challenging market conditions and the proposal gave shareholders an opportunity to realise their investment without taking on the risks the restructuring plan entails.
The retail group will make an application to withdraw the listing from the Hong Kong stock exchange on completion of the deal.
Sham’s stake in I.T will fall to 50.65% from 63.61% after the take-private deal, while CVC will hold 49.35%.
Trading in the shares will resume on Monday. I.T’s shares fell about 55% in 2019 but are up 3.7% so far this year, based on Refinitiv data.
($1 = 7.7507 Hong Kong dollars)
Reporting by Donny Kwok; Editing by Jane Merriman
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