Hong Kong bankers make lemonade out of delistings

Fosun Tourism

15/01/2025 04:54

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Katrina Hamlin
       HONG KONG, Jan 15 (Reuters Breakingviews) - Club Med
owner Fosun Tourism plans to take itself private, capping a
record year of similar deals in a city thirsty for large IPOs.
It helps the company's ailing parent and hard-up shareholders
get a decent premium. For financiers too, the trend is
bittersweet. 
      
  
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    CONTEXT NEWS
    Hong Kong-listed Fosun Tourism has proposed to buy back its
shares that are not owned by its controlling shareholder, Fosun
International, according to an exchange filing on Dec. 10. 
    Fosun Tourism will buy back the outstanding shares at
HK$7.80 each, a 95% premium to their last close, or
alternatively minority shareholders can exchange their shares
for a stake in the new unlisted entity.
    The shares closed at HK$7.40 each on Jan. 7.

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Graphic: Hong Kong take-privates outstrip listings in 2024    https://reut.rs/407gg6z
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 (Editing by Una Galani and Ujjaini Dutta)
 ((For previous columns by the author, Reuters customers can
click on  HAMLIN/ katrina.hamlin@thomsonreuters.com; Reuters
Messaging: katrina.hamlin.thomsonreuters.com@reuters.net))