Giant travel company Kuoni is taking over ET-China.com International Holdings Ltd for three times its market value the day before the bid.
The 115p a share bid is 219% higher than last night’s closing price of 36p a share. The bid values Et-China at £56m. Switzerland-based Kuoni has irrevocable acceptances for 31.5% of the Et-China share capital.
Et-China joined Aim in August 2007 when it raised £3.23m at 127p a share. It has performed well since then but it has been overlooked by most investors.
Kuoni already owns 33% of Et-China and most of that stake was acquired one year ago. Et-China was pleased to get Kuoni on board and it felt that Kuoni would help it exploit the growth opportunities in China. Et-China founder and chief executive Matthew Ng believes that the company will be able to develop faster as a subsidiary of Kuoni.
Kuoni will combine its Asian business operated from Hong Kong with Et-China, whose main focus is South China.
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