Investors unload shares of Belle at up to 8.5% discount
Updated: 2008-04-18 07:24
By Amy Lam(HK Edition)
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A few major stakeholders in mainland footwear retailer Belle International Holdings are trying to sell off shares to make about HK$5.54 billion amid a market rebound.
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Some major stakeholders in ladies' footwear retailer Belle are selling nearly 10 percent of their shares worth more than HK$5 billion. Newsphoto |
The shareholders, including Morgan Stanley and private equity firm CDH Retail, will sell 710 million shares between HK$7.50 and HK$7.80 each, representing a discount of 5 to 8.5 percent to the closing price of HK$8.20 yesterday, according to a term sheet outlining the deal.
Other sellers include Profit Discover Limited, which is fully-owned by Belle Chairman Tang Yiu.
CEO Shen Baijiao and other management staff are in discussions with Tang to buy part of his shares.
At 72, Tang has signaled the sale of the shares he owns to the younger generation.
But shareholders are also taking the advantage of a recent market rebound.
Belle's share price dropped 1.68 percent to close at HK$8.20 yesterday from its peak of HK$13.06, while the benchmark Hang Seng Index rose 1.59 percent.
Belle's 2007 profits more than doubled to HK$1.98 billion.
More deals
Coal miner Shenhua Energy Corp and Chemical firm Yip's Chemical Holdings also saw some of their major shareholders selling off shares.
A shareholder aims to unload 20 million existing shares in Shenhua Energy at HK$34.10 to HK$34.50 each - a 1.4 to 2.6 percent discount to its April 17 close - raising as much as HK$690 million in a deal arranged by Citigroup.
Yip's Chemcial is selling 50 million shares at HK$5.50 to HK$5.65 each, a 4.24 to 6.78 percent discount to its April 17 close, in a deal arranged by Macquarie that could raise up to HK$282.5 million.
(HK Edition 04/18/2008 page2)