Finally it’s official that Chow Tai Fook has agreed to buy part of Peace Mark for HKD 505 million. The major assets that Chow Tai Fook is buying are the luxury and mid market watch distribution and retail businesses in Greater China, Tianjin Seagull, Shanghai Gold Time Precision Instrument, and Milus International S.A. There were over 80 parties who have expressed interest in purchasing part of Peace Mark, but at the end, Chow Tai Fook won because of their speediness, their willingness to close the deal quickly without a lot of conditions attached and without much in-depth due diligence.
Another interesting thing in the notice is that after completion of this transaction, Peace Mark’s group will be mainly the Sincere Group, the group that Peace Mark had bought for over USD 350 mln last year. It also suggests that the provisional liquidator would like Peace Mark to remain as a listed entity, which will be the listed vehicle of Sincere Group. Unlike most restructuring, maybe Peace Mark shares will still worth something after liquidation!
November 1st, 2008 | Tags: Chow Tai Fook, Gold Time Precision, Milus, Peace Mark, retail, sale of assets, Seagull, Sincere | Category: Companies | Leave a comment
