Baodi International Investment Co. Ltd upped its ownership in Techcomp (Holdings) Ltd. after making a mandatory takeover offer for the shares of the Hong Kong-based manufacturer of scientific equipment.
The mandatory unconditional cash offer was conducted after Baodi purchased 169,541,148 ordinary shares, or 61.5% interest, Aug. 14 from Lo Yat Keung, CEO, president and ultimate controlling shareholder of the company.
Following deal completion, Lo resigned from his roles in the company. In addition, Chan Wai Shing resigned as an executive director and vice president, along with Christopher James O'Connor who resigned as an executive director.
Baodi received valid acceptances for 91,901,847 shares of Techcomp in an offer priced at HK$3.267 apiece. The investment firm also offered between HK$1.643 and HK$2.861 per share to cancel share options issued by the company in the past.
Baodi now owns 261,442,995 shares, representing 94.92% of Techcomp. The remaining 5.08% of Techcomp is owned by other public shareholders.
Baodi appointed Zhang Jincan to replace Lo as chairman, CEO and executive director of Techcomp. Jiang Wei, Zhao Na and He Junyu were also added to the company's board as executive directors.
Deloitte & Touche Corporate Finance Ltd. acted as financial adviser to Baodi in the mandatory acquisition of the remaining shares.