November 18 -- Henan Shuanghui Investment and Development (000895.SZ) said major shareholder Rotary Vortex had won approval from the China Securities Regulatory Commission (CSRC) for its offer to acquire a majority stake, which will be valid from November 21 till December 20, reports Shanghai Securities News, citing a company filing.
Rotary Vortex will acquire 294 million shares, or 48.54 percent of total equity, at 56 yuan per share.
Rotary Vortex expects to spend a total of 16.47 billion yuan for the acquisition, and has, together with its wholly-controlled subsidiary, Shuanghui Group, respectively deposited guarantees of HK$1.3 billion and 2.2 billion yuan into a designated account for the acquisition.
Shuanghui Investment and Development had announced on November 29 last year of its plan to obtain all the meat processing assets of parent, Henan Shuanghui Group, valued at 31.9 billion yuan, through a private placement, asset swap, and share swap.
It was reported that the offer is not likely to succeed as the price of the tender offer is below the current share price of 76.50 yuan.