Case study

China Haidian Holdings Limited has acquired the back-buy shares of China Haidian Holdings Limited

Following a share buy-back agreement, China Haidian Holdings Limited (China Haidian) has purchased the buy-back shares, representing approximately 7.17% of its issue share capital from Severin Participants GmbH and Mr Tomlin for a US$32.89 million consideration, which will be financed by the group's internal resources.

China Haidian considers that this transaction represents an opportunity to buy back the shares at a discount to the price issued to the vendors in July 2013 and to avoid the possible disposal of a higher volume of shares at a substantial lower price, which may exert a downward pressure on the share prices. The share buy-back also represents an opportunity to utilize the funds in order to augment shareholder's value. The group's management will continue to use the group's resources to seek profitable investment opportunities.

Severin Participations GmbH is wholly owned by Severin Investment Company, which in turn is wholly owned by the Severin Wunderman Trust. The Severin Wunderman Family Foundation is the residual beneficiary of the Severin Wunderman Trust, an irrevocable trust governed by the laws of the State of Nevada, USA. The trustee of each of the Severin Wunderman Family Foundation and Severin Wunderman Family Trust for the benefit of Michael Wunderman is Mr Tomlin.

Oaklins' team in Hong Kong acted as financial advisor to China Haidian in relation to this transaction.

Tombstone image for China Haidian Holdings Limited has acquired the back-buy shares of China Haidian Holdings Limited

Key deal contacts

Richard Winter

China

Managing Partner

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