BRIEF: Goldlion privatization rejected by shareholders
Apparel maker Goldlion Holdings Ltd. (0533.HK) announced on Friday that a plan to privatize the company from major shareholder and Chairman Tsang Chi Ming was rejected by shareholders. Shareholders representing 55.3% of the shares voted in favor, while 44.7% voted against, failing to meet a required threshold.
Tsang proposed the privatization last December, citing the company’s low valuation and the fact that it had not used the listing for fundraising in 20 years, rendering its listed status “non-essential.” His offer of HK$1.5232 per share represented a premium of 24.85% over the market price at the time, but a discount of around 65.95% to the net asset value per share of HK$4.4741 at the end of last June.
According to its annual report, Goldlion recorded revenue of HK$1.22 billion ($157 million) in 2024, down 8.4% year-on-year, while its net profit fell 19.9% to HK$93.1 million. The company held HK$1.05 billion in bank deposits, cash, and cash equivalents at the end of last year. The book value of its investment and development properties was more than HK$3.3 billion.
The company’s stock plunged 39.6% to HK$0.90 when the market opened on Monday, and closed down 29.53% at HK$1.05 by the midday break.
By Lee Shih Ta
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