This is based on an offer price of USD1.41 in cash per offer share. The offer also includes a deal for Yantai Raffles’ shareholders Yantai Shipyard Pte Ltd together with deputy chairman Brian Chang, Bright Touch Investment Ltd (BT), Leung Kee Holdings Ltd (LK), China International Marine Containers (Hong Kong) Ltd (CIMC HK) and Sharp Vision Holdings Ltd to transfer their shares to Bright Day in exchange for shares in the investment holding company on a 1:1 basis. The cash offer extends to all shares other than those held, directly or indirectly, by Bright Day, Yantai Shipyard, BT, LK, Sharp and CIMC HK.

Yantai Raffles owns and operates the world’s largest crane, the 20,000t capacity Taisun. Bright Day is a subsidiary of CIMC HK, which in turn is a subsidiary of China International Marine Containers (Group) Co. Ltd (CIMC). Yantai Shipyard together with deputy chairman Brian Chang, BT and LK are the legal and beneficial owners of 95,829,600 shares, or 35.03%, of Yantai Raffles; Sharp is the legal and beneficial owner of 27,356,500 shares, or 10%, of Yantai Raffles; and CIMC HK is the legal and beneficial owner of 22,619,350 shares, or 8.3%, of Yantai Raffles. This equates to 145,805,450 shares, or 53.33%, of Yantai Raffles.

CIMC said the rationale for the offer is to increase its shareholding in Yantai Raffles and its subsidiaries to become the single largest shareholder in the company. This, CIMC said, will allow it to better align the objectives of offshore and marine fabrication specialist Yantai Raffles with its own container, trailer, tank equipment and airport equipment manufacturing operations. In addition it will be able to tap the skills, experience and expertise of the existing Yantai Raffles management, it said. CIMC added that the offer itself represents an opportunity for shareholders to realise the value of their investment.

“CIMC is of the view that the offer presents the shareholders of Yantai Raffles with an opportunity to realise their investment in the shares for cash at a price that is at an approximately 15.9% premium to Yantai Raffle’s closing share price of NOK6.90 (equivalent to USD1.22, based on the exchange rate of US$1:NOK5.66 on 6 November) on the NOTC on 6 November,” CIMC said.

“In view of the low trading liquidity, the offer therefore represents an opportunity for the shareholders of Yantai Raffles to realise their investment in the shares.”

UPDATE – 17/11/2009

The Yantai Raffles board of directors has issued a response to the offer. Please download it from this page.



Related Files
Yantai Raffles share offer
Yantai Raffles share offer response