July 15 Iron-ore trader Prosperity Minerals
Holdings Limited said it received an initial approach
from its biggest shareholder, Prosperity International Holdings
(H.K.) Ltd (PIHL), that could lead to an offer of no
higher than 130 pence per share.
PIHL said in a letter to its board that it would decide on
making an offer within 28 days, according to a statement from
PIHL, which owns about 64.07 percent in Prosperity Minerals,
said in a filing with the Hong Kong Stock Exchange that its
board had approved on Friday its proposal to take the AIM-listed
company private. ()
Based on the maximum price, the remaining about 36 percent
stake is valued at about 67 million pounds ($101.29 million),
Prosperity Minerals had a market capitalization of about 114
million pounds as on Friday, according to Thomson Reuters data.
Prosperity Minerals sells iron ore to large and medium-size
steel mills in China. It is also a real estate owner and
developer and has investments in two cement manufacturers in the
Shares in Prosperity Minerals were up 28.48 percent at 102.5
pence - well below the upper limit of the proposed offer price -
at 0920 GMT on Monday. PIHL shares closed up 2 percent at
HK$0.27 on the Hong Kong Stock Exchange.