Hannafin, Geong No Longer Working Toward Merger.
M2 EQUITYBITES-September 28, 2015-Hannafin, Geong No Longer Working Toward Merger
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28 September 2015 - UK-based investment firm Hanafin Investments Ltd. said it has ended talks with Chinese software firm Geong International Ltd. regarding a possible merger, the company said.
On 24 August 2015, Geong announced that it was in preliminary discussions with Hanafin Ltd. (the correct full corporate name of which was Hanafin Investments Ltd.) regarding a possible offer for Geong by Hanafin.
Is was envisaged that any offer will be made at 5 pence per share in cash, the same price at which the company's convertible unsecured loan stock is currently convertible.
Hanafin currently holds GBP 1m of convertible unsecured loan stock in Geong, which is due to be redeemed on 30 September 2015, and which, if converted, would represent 34.6% of Geong's issued share capital.
Last week, Hanafin announced that, following an announcement by Geong on 14 September 2015 regarding the directors' belief that an unquantified but significant provision against the carrying value of the accrued income and trade debtors will be required, those discussions have not been concluded such that Hanafin is able to make an offer for Geong at this time or to elect for the GBP 1m convertible unsecured loan stock which it is holding, to be converted.
As a result of this announcement, Hanafin is bound by the restrictions provided by Rule 2.8 of the Code for a period of six months following the date of this announcement.
Hanafin said it reserves the right to set aside this statement within six months of the date of this announcement in the circumstances set out in Note 2 to Rule 2.8 of the Code.
As a consequence of this announcement, an "offer period" that commenced on 24 August 2015 in respect of Geong in accordance with the rules of the code has now ended.
Geong International is an Internet software solutions provider and operator for large enterprises in China.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Sep 28, 2015|
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