24-05-13 - Louis XIII Ltd. Shareholders Approve Share Consolidation and Business Services Agreement
The Board of Directors of Louis XIII Holdings Limited (“the Company” or “Louis XIII”; stock code 0577.HK) announced that at the special general meeting held today, that the Company’s shareholders approved the consolidation of every ten issued and unissued shares of HK$0.20/share into one consolidated share of HK$2.00/share, which will become effective on 27 May 2013.
Mr. Stephen Hung, Joint Chairman of Louis XIII Holdings, commented, “We are delighted that the share consolidation has been approved. We expect that following the increase in the nominal value of the Company’s shares, there will be a corresponding upward adjustment in the trading price of the consolidated shares. This means that restrictions that had previously been imposed on financial institutions on investing in the Company’s shares, due to their trading at less than HK$1.00 per share, will no longer apply to Louis XIII shares.”
Mr. Peter Coker, Joint Chairman of Louis XIII Holdings, added “The share consolidation is a very positive step forward for the Company. We believe that the increased value will attract more investors, extending the Company’s shareholder base. We expect to see an increase in both the liquidity in trading of the shares and the market value, and as such, a more accurate reflection of the inherent value of the Company.”
At the Special General Meeting, the Company’s shareholders also approved the annual cap amounts of the value of construction services to be provided by Paul Y. Engineering (BVI) Ltd (“PYE”), a 51% owned subsidiary of the Company, to ITC Properties Holdings Group Ltd. (“ITC”), a direct wholly owned subsidiary of ITC Properties. For each of the three years ending 31 March 2014, 2015 and 2016, which are HK$500 million, HK$1,900 million and HK$2,900 million, respectively, as proposed by the Board of Directors.