Deson Development International Holdings Ltd. completed the spin-off of Deson Construction International Holdings Limited for HKD 110.6 million.
As of November 3, 2014, Deson Development International Holdings Ltd. agreed to spin-off 27.66% stake or 110.64 million shares in Deson Construction International Holdings Limited as enlarged by the placing shares, in proportion to their respective shareholdings in Deson Development. The qualifying shareholders will be entitled to 1 Deson Construction International share for every 5 shares in Deson Construction International held on the record date of December 24, 2014. The deal is conditional upon, among other things, the placing becoming unconditional in all respects.
As on December 19, 2014, spin-off has been approved by Board of Deson Development. For the year ending March 31, 2014, Deson Construction International Holdings and its subsidiaries reported total assets of HKD 1.29 billion, net assets of HKD 251.8 million, profit before tax of HKD 20.4 million and profit after tax of HKD 16 million. The Distribution will be satisfied wholly by way of a distribution to the qualifying shareholders of an aggregate of 110.64 million Deson Construction shares. December 29, 2014, Deson Construction International entered into price determination agreement with Kingsway Financial Services Group Limited. Upon completion of the spin off and placing, Deson Development International's stake in Deson Construction International will reduced from approximately 90.1% to approximately 51.18%. Deson Construction International's shares are expected to be listed on January 8, 2015.Tricor Tengis Limited acted as registrar for Deson Development International. China System Securities Limited has been appointed by Deson Development to provide matching service. John Melia of Appleby and Chia Ching of Howse Williams Bowers acted as legal advisor for Deson Development.
Deson Development International Holdings Ltd. (SEHK:262) completed the spin-off of Deson Construction International Holdings Limited for HKD 110.6 million on January 8, 2015.