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Hong Kong – Hontex Issued Repurchase Offer.

 15 October, 2012

  

In September 2012, Hontex International Holdings Company Limited (Hontex) issued an offer document for the repurchase of its shares (Repurchase Offer) following orders made by the Court of First Instance in legal proceedings brought by the SFC. 
 
The Repurchase Offer, which is not available to Hontex’s controlling shareholders, is the result of legal proceedings brought by the Securities and Futures Commission (SFC) against Hontex in relation to false and misleading statements in its IPO prospectus. Hontex agreed that the following prospectus disclosures were false and misleading: 
 
• its turnover and profit before tax for the three years ended 31 December 2008;  
• the value of its cash and cash equivalents for the years ended 31 December 2007, 2008 and 30 June 2009; and
• the number of franchise stores as at 31 December 2008 and 8 December 2009.
 
The Repurchase Offer is made to all shareholders holding Hontex shares on 20 June 2012, being the date of the Court of First Instance’s order, who subscribed for or bought Hontex shares and still hold them.
 
If all shareholders accept the Repurchase Offer, Hontex will pay out a total of HK$1.03 billion to approximately 7,700 shareholders. The Repurchase Offer is being administered by court-appointed administrators and will remain open for acceptance for 35 days until 29 October 2012. 
 
For a copy of the offer document, please follow the link:
 

 

For further information, please contact:
 
Tony Grundy, Partner, Morrison Foerster
tgrundy@mofo.com
 
John Moore, Partner,  Morrison Foerster
johnmoore@mofo.com

 

 

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