The proposal values the firm at about $114m
The firm’s client, Enice Holding Company, is involved in technology development, product supply, and network management, maintenance and optimisation services.
In a joint statement, Baker Mckenzie lead partners Richard Lustig and Bill Fuggle said the proposal is at a price which is almost double the Enice's current CDI trading price on the Australian Securities Exchange of $0.23, and values the company at approximately $114m.
According to the lead partners, the proposal will be completed through a simultaneous scheme of arrangement and capital return to be conducted under Hong Kong law. Although Enice’s CDIs trade on ASX, it is incorporated in Hong Kong.
Tech World is owned by Shen Yongjun, a company director who currently holds 46.44% of the issued CDIs. In the proposal, Yongjun said he has entered into a consortium agreement with certain other CDI Holders who in aggregate currently hold 84.73% of the CDIs (collectively referred to as the excluded group). The excluded group will not participate in the proposal and will not vote on it, Baker Mckenzie said.
Lustig and Fuggle are supported by a team comprising Baker Mckenzie lawyers Lizzie Lu and Timothy Pirera.
Apart from Baker McKenzie in Australia, Enice is obtaining legal advice from Dentons in Hong Kong. The independent directors are obtaining legal advice from HWL Ebsworth.
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