Kerry increases SCMP holdings, could take it private
21 December 2007
Kerry Group, a major shareholder in SCMP Group, offered minority shareholders up to US$303.9 million for their shares, the Wall Street Journal reported. The mandatory general offer could help Kerry Group take the publisher of the South China Morning Post private. Kerry Group offered HK$2.75 (US$0.35) a share for the outstanding shares in SCMP Group, a 10% premium on the stock's last traded price before suspension on December 13. Shares resumed trading on December 20 and rose 8.8% to HK$2.72. Kerry Group said it wants to increase its shareholding from 44.85% to 50% or more after the offer closes. The mandatory offer was triggered by Kerry's increasing its SCMP holdings by more than 2% in the last 12 months. The publisher also has property holdings, which some analysts said was not reflected in the offer price. Kerry Group is controlled by Malaysian tycoon Robert Kuok Hock Nien.