CDIB Capital, the private equity arm of China Development Financial, has announced a tender offer for chemical producer Jintex Corporation that values the latter at NT$1.87 billion ($60.7 million).
CDIB has offered to pay NT$27.50 per share, a premium of 10.4 per cent to Jintex’s closing price on March 22, 2019, the last trading day prior to the transaction announcement.
According to an announcement, the tender offer period will last from March 25 through May 13, 2019, with the minimum threshold of success for total shares tendered set to be equivalent to 51 per cent of Jintex’s total outstanding shares.
Prime Express, the offeror of the tender, is an investment company that is owned by a consortium of investors that include CDIB Capital Asia Partners and two Jintex directors.
“We believe that the partnership between CDIB Capital and Jintex will fully support the company’s ambition to become a regional leader in terms of size and technology. This is an exciting opportunity to work alongside an exceptional management team to capture growth opportunities in Taiwan and beyond,” said Lionel de Saint-Exupéry, Chairman and CEO of CDIB Capital.
The transaction is still subject to market acceptance of the tender offer, customary closing conditions and regulatory approvals. Upon completion of the transaction, Jintex will become a private company, and its shares will no longer be traded on the Taiwan Stock Exchange.
Founded in 1978, Jintex is a leading manufacturer specialized in the production and distribution of textile and leather chemical auxiliary agents.
Headquartered in Hong Kong, CDIB Capital is an Asian private equity investor focused on middle-market growth capital transactions. The firm invests in consumer/retail, value-added manufacturing, and new services, seeking to capitalize on cross-market opportunities in the Asia-Pacific region
It is an affiliate of China Development Financial, one of the largest merchant banking groups in Greater China with over $88 billion in assets.