SUNDAY Communications Limited, an innovative developer and provider of wireless communications and data services in Hong Kong, issued an announcement that its largest shareholder PCCW - Hong Kong's largest integrated telecommunications provider and one of Asia's leading players in Information and Communications Technologies (ICT) submitted a proposal to acquire its all telecom assets, including 2G and 3G business, for HK$1.943.
It's the second attempt for PCCW which hold nearly 80% of Sunday to privatize the company since last Sept. PCCW said it will pay for the deal with HK$401 million cash and HK$1.542 billion long-term promissory notes. But the deal has to be approved by 75% of the minor shareholders, the proportion was lower than 90% of last time.
Analysts said if the deal could be done smoothly, the minor shareholders who own 21% of SUNDAY's shares will get HK40.65 cash each share - higher 22.6% than the company's closed price before suspention and equal to the offer price given by PCCW last bid. Furthermore, SUNDAY will become a shell company and suffer cancellation in HHex.
On the other side, if the minor shareholders deny the acquistion, SUNDAY has to find new business to keep its listing company status, during the period, it need to stop trading in market; and if the period overpassed 12 months, HKex qualify to implement a cancellation for SUNDAY.
PCCW once was in attempt to acquire the company, but failed, which made it can't take the privatization project in coming one year. SUNDAY will hold a shareholders meeting in Nov and PCCW has promised it don't recall the acquisition program before Dec 31.