TCC International Holdings Ltd., the Hong Kong-listed unit of Taiwan’s largest cement maker, said its parent made a HK$5.59 billion ($721 million) buyout offer for the company.
Taiwan Cement Corp. has offered HK$3.90 for each ordinary and preferred share and 0.01 cents for each option and warrant, according to a Hong Kong stock exchange filing yesterday. The parent, which owns 56.5 percent of TCC, may make a compulsory purchase and withdraw the company’s listing.
TCC gained 6.6 percent to HK$3.06 on Nov. 22, its last day of trading in Hong Kong before being suspended. The stock has gained 38 percent this year, compared with the 4.5 percent gain in the benchmark Hang Seng Index. The stock’s average daily trading volume in 2013 has been 2.42 million shares.
“The offers present an immediate opportunity for holders of offer shares and offer preference shares to realize their investments,” TCC said. “Given that the shares are generally thinly traded on the stock exchange and the preference shares are not public listed, there is limited opportunity for holders to divest.”
The offer values the company, including shares that Taiwan Cement already owns, at HK$14.8 billion, according to the statement.