Joy City Property proposes $2.93b share buy-back

The company plans to delist after the buy-back.

Joy City Property Limited has announced a proposed share buy-back worth approximately $2.93b through a scheme of arrangement under Section 99 of the Companies Act.

If approved, all scheme shares will be cancelled at $0.62 per share in cash.

The company will not increase the offer price and has no right to do so. Shares held by controlling shareholders will not be cancelled.

After the scheme takes effect, Grandjoy Holdings Group will own 96.13% and Achieve Bloom will own 3.87% of the company. The shares will then be delisted from the Hong Kong Stock Exchange.

The buy-back will go ahead only if key conditions are met: at least 75% of Scheme Shareholders by value must approve it, 75% of disinterested shareholders must vote in favor with less than 10% voting against, and the Bermuda Court must sanction and register the scheme. There must also be no legal or regulatory blocks, all required approvals and consents must be secured, and the company’s business and financial position must remain stable.

The company plans to finance the buy-back using internal resources and/or external debt.

CITICS HK, the exclusive financial adviser, has confirmed that sufficient funds are available to complete the transaction.

No dividends or capital returns will be paid before the scheme becomes effective. If any are declared, the offer price will be reduced accordingly.