21-11-11 - Dealing in New Shares of Paul Y. Engineering
Paul Y. Engineering Group Limited (“PYE” or “the Group”, 0577.HK) reminds shareholders that dealing in the new shares ex-entitlement to the distribution in specie, the cash alternative and the cash dividend will commence on Tuesday, 22 November 2011. The new shares will continue to trade on an ex-entitlement basis before the placing agreements are completed.
On 15 November 2011, shareholders of PYE approved the acquisition of a 50% interest in Legendary East Ltd for a total consideration of US$220.5 million. Shareholders also voted in favour of the acquisition being funded by a proposed placing and subscription of 3,100 million plus 500 million shares (over allotment) at HK$0.65 per share, raising up to HK$2,340 million. A cash dividend of HK$0.25 per share was approved to be paid to the existing PYE shareholders. A specific mandate for the issuance of a maximum of 4,207 million new PYE shares to be allotted to the other shareholders of Legendary East in exchange for their interests in Legendary East at their option was also approved. In addition, the distribution in specie of 49% of PYE BVI, the intermediate holding company of PYE’s entire existing businesses was approved.