Unlocking Value

In May 2024, we, Argyle Street Management, wrote a blog post on the share buyback offer of Hong Kong Technology Venture (HKTV, 1137 HK). HKTV is the operator of the popular HKTVmall.

To recap, on 22 May 2024, HKTV announced that it offered to buy back 11.25% of its outstanding shares. The buyback price was at 20.8% premium over the share price immediately before the announcement, and 10.8% discount to its net asset value on 31 December 2023.

The buyback offer is now completed. As expected, the offer was highly successful.

Even though the controlling shareholder group (which owned 45.8% outstanding shares) undertook not to tender on day one, shareholders of 24.7% outstanding shares accepted the offer, which was double the size of the offer. Due to strong demand, HKTV had to allocate acceptances on a pro rata basis.

Also, shareholders supported HKTV’s application for a “whitewash waiver” overwhelmingly. 99.9% of the present-and-voting minority shareholders voted in favor. As expected, the Securities and Futures Commission duly granted the whitewash. (Read our earlier post on what a “whitewash waiver” means).

HKTV an excellent example for China Merchants China Direct Investments (CMCDI, 133 HK).

If you are new to CMCDI, read our primer.

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🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com

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在2024年5月，我们，Argyle Street Management，撰写了一篇关于香港科技探索有限公司（1137 HK，简称”HKTV”）股份回购要约的文章。HKTV 是知名的香港电视购物网络（HKTVmall）的运营商。

简而言之，2024年5月22日，HKTV 宣布提出回购其流通股份的11.25%。回购价格比公告前股价高出20.8%，比2023年12月31日的净资产价值低了10.8%。

回购要约现已完成。正如预期的那样，该要约非常成功。

控股股东及关联方（持有45.8%流通股份）承诺不出售其股份，剩余股东中，24.7%流通股份的股东接受了要约，这是拟要约规模的两倍。由于需求强劲，HKTV 必须按比例接受。

此外，股东们对 HKTV 申请“清洗豁免”（ “whitewash waiver”）表示了强烈支持。99.9%出席并投票的少数股东投票赞成清洗豁免。正如预期的那样，证监会（SFC）正式批准了豁免。 （阅读我们之前关于“清洗豁免”含义的文章）。

HKTV 是招商局中国基金（“中国基金”，133HK）的一个绝佳示范。

如果您刚开始了解中国基金，请阅读我们的指南。

欢迎随时与我们联系

💬 微信: ASM_Argyle

💬 WhatsApp: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com