KVB Kunlun Shares to Resume Trading following $100 Million Acquisition

The Hong Kong broker KVB Kunlun Financial Group Ltd (HKG:8077) (KVB) and the Chinese Investment bank that bought 60% of its shares, CITIC Securities, made a joint announcement today revealing more details on the deal and the firm's way forward.

According to the Share Purchase Agreement, CITIC Securities has conditionally agreed to acquire 1,200,000,000 KVB Shares, for a total cost of HK$780 million (USD$100.5 million), equivalent to HK$0.65 per share. This represent 60% of the 2,000,000,000 KVB shares in issue of as at the date of the announcement.

It was also announced that immediately following completion of the deal, CITIC Securities and parties acting in concert with it will be required to make an unconditional mandatory cash offer to acquire all the issued KVB Shares (other than those KVB Shares already owned and the 300,000,000 KVB Shares to be retained by the broker upon completion) and to cancel all the outstanding KVB Options in the period prior to the close of the Share Offer.

The companies said that the offers comprising the share offer and the option offer, when made, will be unconditional in all respects. For each share CITIC offers HK$0.65 in cash and for each option the bank is willing to pay HK$0.236 in cash.

Trading in the KVB shares on the Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term was suspended with effect from 30 January 2015 at the request of KVB Kunlun. Now the two firm reveal that an application has been made by KVB Kunlun to the Hong Kong Stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term for resumption of trading in the KVB Shares with effect from Friday, 27 February 2015.

Investors will likely take notice that the HK$0.65 per share CITIC Securities paid is considerably less than the market value of KVB shares on the Hong Kong Exchange before trading was suspended.