19 August 2010
Mayer Brown JSM advises Li & Fung Limited ("LF", SEHK stock code: 494) on its proposed acquisition of Integrated Distribution Services Group Limited ("IDS", SEHK stock code: 2387) by way of privatisation pursuant to a scheme of arrangement. LF and IDS jointly announced on 12 August 2010 in respect of the proposed acquisition.
Mayer Brown JSM acted for LF while Deacons acted for IDS. J.P. Morgan was the financial adviser to LF.
The IDS shareholders may elect either the cash alternative or the share alternative as the proposed consideration for cancellation of their IDS shares:
Cash Alternative: HK$21.00 for every IDS share;or Share Alternative: 0.585 LF share for every IDS share. The cash consideration represents a premium of approximately 42.86% over the closing price of HK$14.70 per IDS share on 6 August 2010 (being the last trading day in IDS shares in the week immediately preceding the date of announcement). The exchange ratio of 0.585 LF share per IDS share cancelled values each IDS share at HK$21.00 based on the closing price of HK$35.90 per LF share on 6 August 2010.
The Mayer Brown JSM team was led by corporate finance partners Patrick Wong and Derek Tsang.
Hyperlink to the joint announcement is set out below: