TORONTO, May 27, 2014 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, announces that it will not participate in the open offer by its principal indirect subsidiary, Sunwah Kingsway Capital Holdings Limited ("SWK"). The decision was made after due consideration, including with regard to pricing of the offer and the Company's current financial position. The Company has communicated its intention to SWK.
On 11 April, 2014, SWK announced a proposal to raise approximately HK$136.2 million (approximately US$17.5 million) before expenses by issuing 920,260,976 offer shares at the offer price of HK$0.148 (approximately US$0.019) per offer share on the basis of one offer share for every four existing shares (the "Open Offer"). Assuming all the offer shares under the Open Offer are fully underwritten under the Underwriting Agreements signed by SWK and the underwriters, the Company's shareholding in SWK held under its wholly owned subsidiary, World Developments Limited, will be reduced from 64.97% to 51.97% upon completion of the Open Offer.
Despite the change in the Company's shareholding in SWK, the Company does not expect any material dilution on the share of the Net Asset Value (NAV) of the SWK subsidiary group under the Company's consolidated financial statement.
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a strategically positioned asset-based financial services provider, linking the global investment community with China's high growth economy. Founded in 1990 and backed by prominent Hong Kong based conglomerate, Sunwah Group, a key element of the Company's growth strategy involves identifying and advancing select international opportunities that are poised to benefit from proliferating consumerism in China and development in key areas of Southeast Asia as the need for foreign suppliers of natural resources to support growth in these regions increases. Sunwah International is uniquely positioned to capitalize on this demand and the global economic changes stemming from this shift, leveraging a 22-year track record and an extensive relationship/strategic investor network throughout Asia. The Company operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen, Macau and Toronto.
The organization's primary Hong Kong based subsidiary, Sunwah Kingsway Capital Holdings Limited, is listed on the Stock Exchange of Hong Kong under the stock code 188. Sunwah Kingsway is licensed to provide a range of financial solutions in Hong Kong and abroad that include award-winning brokerage services and innovative corporate finance offerings.
The Company is listed on the Toronto Stock Exchange under the symbol SWH.
This press release contains "forward-looking statements" as defined under applicable Canadian securities laws. These statements include, but are not limited to, statements made concerning the Company's 2014 objectives, strategies to achieve these objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.
Except as required by applicable law, management and the board of directors of the Company (the "Board of Directors") undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE: Sunwah International Limited
For further information:
Kristen Humphrey, Sunwah International Group, (416) 888-2323, [email protected].