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China's Guangzhou Baiyun Airport offers 1.8 shares, 5 warrants/10 shares

Analysis

BEIJING (XFNews) - Guangzhou Baiyun International Airport Co Ltd (SHA 600004) said it will offer 1.8 bonus shares plus five put warrants for every 10 tradable shares held by public shareholders under its state-share disposal plan.

The Airport Management (Group) Company of Guangdong Province made the offer as the firm's controlling shareholder.

In a statement filed with the Shanghai Stock Exchange, Guangzhou Baiyun said that the warrants can be exercised at seven yuan per share within a mutually agreed period.

The parent company has promised to hold its remaining shares for at least 36 months after the offer. It will not sell its shares at prices below CNY9.8 per share.

After the offer, the parent company will pay up to CNY800 million to buy back a maximum of 100 million shares.
All the other holders of non-tradable shares have pledged to hold their shares for at least 12 months after the offer.

The holders also promised that following the offer, they will not sell more than five pct of the listed company's total shares over 24 months and 10 pct over 36 months.

The offer plan is subject to shareholder approval and State-owned Assets Supervision and Administration Commission authorization.

Trading in Guangzhou Baiyun shares has been suspended since yesterday and is expected to resume on Nov 4.

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