China’s Luyang Energy hits limit as Hong Kong shareholder increases stake to 66% premium

(Yicai Global) April 28 — Shares of Luyang Energy-Saving Materials soared today following the limit imposed by the stock market after the Chinese maker of inorganic fiber materials said it had received an offer from a Hong Kong stakeholder to nearly double its stake in the company at a premium of 66%.

Luyang Energy share price [SHE:002088] closed 10% higher at CNY14.41 ($2.19).

Unifrax Asia-Pacific Holding Limited (Hong Kong) is offering to purchase 126 million shares from other shareholders at a price of CNY21.73 (US$3.26) each, a 66% premium to the closing price of action on April 26 before the announcement. fact, Luyang Energy said yesterday. The transaction, worth 2.7 billion CNY (417 million USD), will increase Unifrax’s share in the company to 53% from 28.1%.

Unifrax will not rebrand the company or make changes to its core management team once the deal is completed, said Zibo, Luyang Energy, based in eastern Shandong province. The deal will not lead to the delisting of Luyang Energy because Unifrax will not buy again once its shareholding ratio reaches 53%, he added.

Unifrax acquired a controlling 28.1% stake in Luyang Energy in 2014 for 720 million CNY (109.2 million USD). The company is owned by ASP Unifrax Holdings, a maker of high-temperature insulation materials controlled by two US nationals Jose Feliciano and Behdad Eghbali.

Editor: Kim Taylor

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