Peace Mark (304) saga continues…
According to Ming Pao, after CVC’s pulling out from the bidding of Peace Mark, Peace Mark is currently in talks with Carlyle for new equity injection.
On the other hand, there are more questions on the credibility of the management. The announcement from Peace Mark last Wednesday revealed that A-One (the vehicle owned by Chau and Leung, the biggest shareholders) has pledged 131 million shares (30% of A1’s holdings) to other people. Furthermore, JP Morgan released a research report on Friday saying that they have wrongly believed the management.
Two months ago Peace Mark still had a good future ahead: they are a leading luxury watch manufacturer and retailer in the growing Chinese market. Now they are in dire situation, waiting for rescue from their white knight. Now Peace Mark’s credibility is put in test: will Peace Mark be able to pass Carlyle’s due diligence process at the end and become one of Carlyle’s portfolio companies?
