Head of Hong Kong retail group Lifestyle International, operator of Sogo, seeks to take company private for US$239 million

Thomas Lau, chairman of Lifestyle International, has proposed to privatise the company through his wholly-owned firm Emerald Energy Holdings

He has offered to buy 376.8 million shares of the company at HK$5 each, representing a 62.3 per cent premium over the stock’s August 4 closing price

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People are seen crossing the road in Causeway Bay, where popular department store Sogo stands as a retailing landmark, on April 17, 2022. Photo: Nora Tam

Published: 6:00am, 8 Aug 2022Updated: 10:14am, 8 Aug 2022

The chairman and majority shareholder of Lifestyle International Holdings, operator of Sogo department store in Hong Kong, plans to take the company private in a deal worth HK$1.88 billion (US$239 million).

Thomas Lau Luen-hung, through his wholly-owned company Emerald Energy Holdings, made the privatisation proposal on August 1, according to a joint stock exchange filing on Sunday.

Lau has offered to buy 376.8 million shares, or 25.09 per cent of the retailer he does not already own or control, at HK$5 each for a total of HK$1.88 billion. That would represent a 62.3 per cent premium over the stock’s closing price of HK$3.08 on August 4 before trading was halted on Friday.

The stock surged 45 per cent to HK$4.47 as of 10am local time, approaching the take-private offer price. If sustained, it would be the stock’s biggest jump on record.

Lau intends to finance the privatisation through a non-revolving facility made available by the Singapore branch of JPMorgan Chase. DBS Group is advising Lau on the deal.

Thomas Lau Luen-hung, chairman of Lifestyle International Holdings, speaks during the company’s press conference in Causeway Bay on August 12, 2019. Photo: Jonathan Wong

The plan to take Lifestyle International private would not have any material change to the company’s existing businesses, which will continue to employ existing employees, according to the joint filing. Lau, however, planned “to diversify the business model and make new investments when the opportunities arise”.