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Eversheds Sutherland advises DBS on Skyworth Buyback

  • Hong Kong

    15-09-2020

    Eversheds Sutherland advised DBS Asia Capital Limited (“DBSAC”), as the financial adviser to Skyworth Group Limited (“Skyworth”), on a share buyback by Skyworth.

    The total deal value is approximately HKD 1.84 billion (USD 142 million). This calculation is based on a conditional cash offer to buy-back up to 392 million shares at HK$2.80 per share (the “Offer”).

    The Offer also involved an application by Skyworth’s controlling shareholder for a whitewash waiver.

    Skyworth manufactures and markets advanced consumer electronic products and accessories including televisions, digital set-top boxes, LCD modules, ‘smart’ white goods and tablet computers. Skyworth is also involved in property development. 

    The company was established in 1988, and is headquartered in Hong Kong. Skyworth listed on the Main Board of the Stock Exchange of Hong Kong in 2000 (HKSE: 751).

    Yip Wei Mun, Managing Director of DBSAC, commented:

    “It was a pleasure to work with the Eversheds Sutherland team.

    They provided efficient and diligent support, together with practical solutions, throughout the deal.”

    Stephen Mok, Head of Corporate, Asia, Eversheds Sutherland, added:  

    “We were honoured to work with the DBS team on this major transaction.

    This is the second large deal we have closed for DBS group this year. Earlier in 2020, we advised DBS on the privatisation of Springland International Holdings Limited.

    The Skyworth transaction is notable, as it has been a few years since the last share buyback took place in Hong Kong.

    Companies initiate these share buy-backs for a variety of reasons. Share buybacks can increase shareholder value by improving the return on assets and equity. As a result, they are considered an effective way for companies to return cash to their shareholders.  

    I would like to thank DBSAC for appointing us to act on this transaction. We look forward to working alongside them on the next deal.”

    Stephen Mok, and Of Counsel Sin Joh Chuang, led the transaction. They were supported by Associate Alvin So and trainee Jamie Leung.

    Stephen Mok, Partner

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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