Sogo department store operator set to delist in December

news November 2022 South China Morning Post

What: Nearly 95% of independent shareholders voted in favour of Sogo's operator, Lifestyle International, to delist the company as part of a privatization scheme.

Why it is important: While the privatization is said to not bring any material change to the existing business and will continue to employ its existing employees, Thomas Lau Luen-hung plans to diversify the business model and make new investments when possible.

Lau had initially proposed the privatization plan in August, offering to buy 376.8 million shares at an offer price with a 62.3% premium over the stock’s price, however trading was halted for the announcement.

After 18 years as a listed entity, Lifestyle International’s chairman will buy out all independent shareholders as part of a privatization scheme which will be completed on December 20. The company’s shares closed 4.5% higher at HKD 4.90 on Monday before the voting result, close to the privatization offer of HKD 5 per share.

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