Tom Group makes an offer on online unit
Hong Kong-based Tom Group said yesterday it will offer up to HK$1.57 billion to buy out its listed Internet unit Tom Online, boosting its share price by nearly one-third after a week-long suspension of trade.
Under the terms of the deal, Tom Group, controlled by Hong Kong tycoon Li Ka-shing, would buy out Tom Online at HK$1.52 for the unit's Hong Kong-listed shares and at HK$121.60 for each American Depositary Share, according to a joint statement from the companies submitted to the Hong Kong stock exchange yesterday.
The buyout price represents a premium of 33 percent to Tom Online's closing price on March 2, when trading in shares of Tom Online and Tom Group were suspended in Hong Kong and on the NASDAQ. It also represents a premium of 1.5 percent to the company's initial public offering (IPO) price in 2004.
