A proposal by PUBLIC BANK BHD's 64.88%-owned Hong Kong-listed financial services unit JCG Holdings Ltd to go private has been shot down by the company's independent shareholders.
The proposed exercise would have involved a share cancellation and cash return of HK$4.61 for every JCG share held, but StarBiz learnt yesterday that the company had failed to obtain the minimum approval rate of 75% from its independent shareholders for the plan to go through and that more than 10% of the votes cast at a court-ordered meeting were against it.
Sources in Hong Kong revealed that only a 9.8% approval rate was obtained, while about 58% of the independent shareholders voted against to plan. An announcement from the company is expected in Hong Kong today.
Under Hong Kong rules, a meeting of shareholders has to be convened to consider such a proposed corporate exercise, and only independent shareholders are allowed to vote on the resolution.
Immediately following the court-ordered meeting, a special general meeting would have to be held to consider and pass a special resolution to approve and give effect to the proposed scheme. All shareholders, including interested parties and those acting in concert, are allowed to vote at this special meeting.
However, as JCG's privatisation proposal was not approved at the court-ordered meeting, the special general meeting scheduled yesterday for all JCG shareholders, including Public Bank, was adjourned to a later date.
No officials from Public Bank could be reached for comment.
JCG is principally involved in deposit taking, personal and commercial lending, mortgage financing, stockbroking, the letting of investment properties, the provision of finance to purchasers of taxis and public light buses, the trading of taxi cabs and taxi licences, and the leasing of taxis.
The company had in July proposed to go private by way of a privatisation exercise that would buy back and cancel all of its ordinary shares of 10 HK cents each held by shareholders other than Public Bank.
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