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2007-5-16 03:45:00 p.m. HKT, XFNA
Lehman Brothers to take 6.53 pct stake in Hong Kong's Wang On Group
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HONG KONG (XFN-ASIA) - Lehman Brothers Holdings has agreed to acquire a 6.
53 pct stake in Wang On Group Ltd by subscriing to 10 mln warrant shares in
the Hong Kong-listed company for 4.5 mln hkd and buying 10 mln company shares
from chairman Tang Ching Ho at 5.4 hkd per share, Wang On said.
The warrant shares bear the rights for Lehman Brothers to subscribe to 10
mln Wang On shares at an initial subscription price of 9.0 hkd per share,
Wang On said in a statement.
Upon completion of the share sale and the full exercise of the rights
warrants, Lehman Brothers will hold a 6.53 pct stake in Wang On, the
statement said.
The selling price of 5.4 hkd per share set for the shares to be sold to
Tang represents a 36.32 pct discount to the stock's closing price of 8.48 hkd
on May 8, the last trading day before suspension, while the warrants' initial
subscription price of 9.0 hkd represents an 11.44 pct premium to the stock's
closing price of 8.48 hkd, the company said.
Wang On is expected to raise net proceeds of 4.0 mln from the issue of
warrants and a separate 90 mln hkd after the exercise of the warrants.
The company said it will use the proceeds of the sale for general working
capital purposes.
As of 3.30 pm, Wang On was up 1.78 hkd or 20.99 pct at 10.26.
roby.lau@xfn.com
rl/net xfnrl/xfnnt
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