/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
HONG KONG, Aug. 13 /CNW/ - Kingsway International Holdings Limited (TSX:KIH) (the "Company"), an Asian based financial services firm, announces that its principal shareholder, Sun Wah Capital Limited of Hong Kong, has notified the Company that it has entered into an agreement to purchase ("Proposed Purchase") 16,216,159 common shares ("Shares") of the Company at a price of CAN$0.50 per Share for an aggregate purchase price of CAN$8,108,080 from Mrs. Mary Yuk Sin Lam, a director of the Company. The acquisition of shares shall close on or about May 13, 2011 or on such earlier business day as the parties may agree. The closing is conditional upon the parties receiving confirmation that the acquisition of Shares does not trigger, or is exempt from, takeover bid requirements in Hong Kong and Canada, if necessary.
Sun Wah Capital Limited is controlled by Dr. Jonathan Koon Shum Choi, and Dr. Choi is a director and controlling shareholder of the Company. Currently Dr. Choi beneficially owns and controls, directly and indirectly, 45,481,151 Shares representing 50.35% of the outstanding Shares and Mrs. Lam beneficially owns and controls, directly and indirectly, 32,432,317 Shares representing 35.90% of the outstanding Shares.
If the Proposed Purchase is completed, Dr. Choi would control up to 61,697,310 Shares representing approximately 68.30% of the Shares of the Company and Mrs. Lam would control up to 16,216,158 Shares representing approximately 17.95% of the Shares of the Company. In addition, if the convertible debentures controlled by Dr. Choi are fully converted into 5,625,000 Shares at a deemed conversion price of CAN$0.80 per Share, Dr. Choi would control 67,322,310 Shares representing approximately 70.15% of the enlarged Shares of the Company.
About Kingsway International Holdings Limited
Kingsway is a strategically positioned, asset based financial services firm focused on linking China's high growth economy with the global investment community. Through the Kingsway Group's worldwide operations (encompassing Kingsway and its subsidiaries), the Company conducts operations through two main arms: Capital Markets and Asset Management. The Group operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen and Toronto.
China is widely recognized as an increasingly important player on the world's financial stage. As the country continues to grow, its greatest needs will lie in energy and resources. Following a recent restructuring, Kingsway is positioned as a middle tier provider of financial services in these sectors and an opportunistic investor in these and related sectors. The Group's strategy is to use investment activities strategically to generate advisory services revenue while creating value for its shareholders through asset accumulation.
Leveraging a 20-year track record and significant relationships throughout Asia, Kingsway continues with its strategic focus on China, working with China based groups with a particular focus in financial services and in natural resources - particularly mining and energy - and infrastructure.
Founded in 1990, Kingsway is listed on the main board of the Toronto Stock Exchange under the symbol KIH.
SOURCE KINGSWAY INTERNATIONAL HOLDINGS LIMITED
For further information: For further information: please contact Gary Quedado, Kingsway Group, (416) 861-3099 Ext. 0238, firstname.lastname@example.org