English | 简体中文 | 繁體中文 | 한국어 | 日本語
Tuesday, 29 September 2020, 09:00 HKT/SGT
Share:
Rykadan Capital Proposes Stock Buy-back of Up to 102,000,000 Shares at Offer Price of HK$0.68 Per Share, Equivalent to 51.11% Premium over the Closing Price on the Last Trading Day
Certain and Immediate Cash Returns to Shareholders

HONG KONG, Sept 29, 2020 - (ACN Newswire) - Rykadan Capital Limited ("Rykadan Capital" or the "Company", together with its subsidiaries the "Group"; stock code: 2288) just announced that Dongxing Securities (Hong Kong) Company Limited will make a conditional cash offer (the "Offer") on behalf of it to the Shareholders to buy back up to 102,000,000 of the Company's issued shares (the "Shares") at an Offer Price of HK$0.68 per share (the "Offer Price"). Upon completion, all Shareholders are expected to benefit from the increase in consolidated net asset value per Share. Following the closing of the Offer, the Group intends to maintain its listing on The Stock Exchange of Hong Kong Limited ("SEHK").

The 102,000,000 Shares proposed in the stock buy-back represents approximately 21.36% of the Shares in issue as at the date of the Announcement. The Offer Price of HK$0.68 per Share represents a premium of 51.11% over the closing price of HK$0.45 as quoted on SEHK on 15 September 2020 (the "Last Trading Day"), or a premium of approximately 55.55% over the average closing price of the Shares during the last 30 consecutive trading days immediately prior to and including the Last Trading Day. The aggregate cash consideration payable under the Offer (if the maximum number of Shares are bought back) will amount to approximately HK$69,360,000.

The price of the Shares has historically been traded at a significant discount to the Group's net asset value attributable to owners of the Company per Share. Taking the closing price of the Shares of HK$0.45 on the Last Trading Day as a reference, the discount to the Group's net asset value attributable to owners of the Company of approximately HK$2.77 per Share as at 31 March 2020 was as high as approximately 83.77%.

Premium valuation: The Offer provides an opportunity for the Shareholders to sell their Shares at a premium to the prevailing market prices of the Shares and receive cash proceeds in return. In particular, the closing price of the Shares has never exceeded the Offer Price after 27 September 2019 for almost 12 months. The Offer Price represents a premium of approximately 55.55% over the average closing price during the last 30 trading days immediately prior to and including the Last Trading Day.

Certain and immediate value: The Shares have been traded on the SEHK at an average daily trading volume of approximately 71,397 Shares for the six months up to and including the Last Trading Day, representing less than 0.02% of the total issued Shares as at the Last Trading Day. The Offer presents an immediate opportunity for the Shareholders to dispose of their Shares, not be constrained by trading liquidity, and exit their investment for cash proceeds.

Mr William Chan, Chairman and Chief Executive Officer of Rykadan Capital, said, "Over the past years, the shares of the Company have been trading at a steep discount to its consolidated net asset value. By repurchasing such maximum number of Shares from the market, the Offer will enable our Shareholders to immediately realise cash returns."

About Rykadan Capital Limited (Stock code: 2288)
Rykadan Capital Limited is a Hong Kong-based investment holding company. The Group operates and invests in real estate development, real estate investment, distribution of building materials and asset, investment and fund management. For more information, please visit www.rykadan.com.

Media enquiries:
Strategic Financial Relations Limited
Maggie Au +852 2864 4815 maggie.au@sprg.com.hk
Adrianna Lau +852 2114 4987 adrianna.lau@sprg.com.hk
Rachel Ko +852 2114 2370 rachel.ko@sprg.com.hk
www.sprg.com.hk


Topic: Press release summary Sectors: Daily Finance, Real Estate & REIT, Daily News, Funds & Equities, Local Biz
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

Latest Press Releases
Fujitsu drives chemical industry logistics DX with participation in joint logistics demonstration  
Monday, December 23, 2024 12:30:00 PM
Seamless HDB Renovations: How 2 Design Combines Expertise with In-House Solutions  
Dec 23, 2024 10:00 HKT/SGT
Trio AI Establishes Partnership Ecosystem for Artificial Intelligence Super Computing (AISC)  
Dec 23, 2024 09:07 HKT/SGT
Summit Group Responds to White Paper Citing Governance Issues in Bangladesh's Power and Energy Sector  
Dec 23, 2024 09:00 HKT/SGT
The finest places to live, work, and thrive in Asia are celebrated at the 19th PropertyGuru Asia Property Awards Grand Final  
Dec 23, 2024 07:50 HKT/SGT
Mainland China, Hong Kong, Macau companies triumph at finale of 2024 PropertyGuru Asia Property Awards   
Dec 22, 2024 20:50 HKT/SGT
The 2024 PropertyGuru Asia Property Awards International Luncheon celebrates real estate achievements in the Middle East and South Asia  
Dec 22, 2024 19:30 HKT/SGT
Virturo Elite Club: Unlock Exclusive Wealth-Building Opportunities for High-Net-Worth Individuals  
Dec 21, 2024 08:00 HKT/SGT
Pathwizz Redefines Trust in Digital Transactions with Award-Winning Support and Verified Platforms 'Wizz Support'  
Dec 21, 2024 07:00 HKT/SGT
VAP Group's Global AI Show Explores the Future of AI with Over 3,000 Participants  
Dec 20, 2024 22:46 HKT/SGT
More Press release >>
 Events:
More events >>
Copyright © 2024 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575