An independent director and the financial adviser for ITC Corp support the company's proposed acquisition of Paul Y-ITC at a deep discount to its net asset value (NAV).
The construction and investment company owns 42.59 per cent of Paul Y and has proposed buying the remaining shares it does not already own.
According to a circular issued by ITC yesterday, independent director Winston Calpator Chuck said the terms of the offer were fair and in the interests of the company and its shareholders.
Under the offer, ITC would buy Paul Y shares at 30 HK cents each - an 89.5 per cent discount to its NAV per share of HK$2.85.
The discount ratio would be 88.3 per cent if compared with Paul Y's net tangible asset value.
Dao Heng Securities, which was appointed by ITC as the financial adviser for the deal, said the acquisition would nearly double the company's net tangible asset value to HK$2.86 billion from HK$1.53 billion.
