Mainboard-listed China Merchants Property Development (CMPD) has proposed to delist from the Singapore Exchange (SGX) after its proposed merger with its controlling shareholder China Merchants Shekou Industrial Zone Holdings (CMS).
CMS, a property firm, will acquire CMPD via a share swap, said CMPD in a filing with the SGX yesterday.
Reuters reported that CMS aims to raise up to 15 billion yuan (S$3.3 billion) in a private share placement to fund the acquisition, paying 38.1 yuan for each A-share and HK$36.61 (S$6.57) for each B-share.
CMPD will offer Singapore investors with B-shares HK$26.54 cash for each share, a 50 per cent premium over its last-traded closing price on April 2.
The company, which is primarily listed on the Shenzhen Stock Exchange, began trading as a secondary listing on the SGX mainboard in July 1995.
Trading of its shares on the Shenzhen Stock Exchange and SGX has been suspended since April 3.
The stock will stay suspended here until the completion of the delisting, while trading on the Shenzhen Stock Exchange is expected to resume next week. After the merger, CMS, which is wholly owned by state-owned enterprise China Merchants Group, will list on the Shenzhen Stock Exchange.
Chinese regulations prevent Singapore shareholders from opting to receive CMS A-shares instead of cash.
Investors who want these A-shares will have to first migrate their CMPD B-shares to the Shenzhen Stock Exchange.
But they will only be allowed to sell their CMS A-shares, and not acquire additional ones, CMPD said in a statement.
CMPD will hold an extraordinary general meeting on Oct 9 in Shenzhen to obtain approval for the proposed merger and delisting from the SGX, which approved the firm's request for delisting in July.
Shareholders who intend to migrate their holdings so as to trade on the Shenzhen Stock Exchange or elect for CMS A-shares have until Dec 3 to complete the transfer request process.
Other shareholders can expect payment for their stock in the middle of December.