STORES | Staff Reporter, Hong Kong

I.T Group offers to privatise company for $1.305b

It has teamed up with private equity group CVC to make an offer.

Fashion retail group I.T has recently announced that its founder and chairman Sham Kar Wai has teamed up with private equity group CVC to make an offer in privatising the company for $1.305b (US$168.37m), according to their filing to the Hong Kong Stock Exchange.

The filing stated they are offering a $3 cancellation price per share in cash, which represents a premium of approximately 54.6% over the closing price of $1.94 per share before they halted trading on 30 November.

I.T said it has been unable to transform business operations sufficiently for online growth and related cost-saving measures to offset a decline in sales from retail outlets, despite adopting online strategies.

The proposal would give shareholders an opportunity to realise their investment at a compelling premium amidst uncertainty and without undertaking the risks entailed by the restructuring plans.

Sham’s share in I.T will fall to 50.65%, whilst CVC will hold the remaining 49.35%

The company will apply to withdraw the listing from the HKEX upon completion of the deal.

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