Bank of East Asia Announces Adjustments to Proposed Spin-Off and Distribution

Strategic Insights -

The Bank of East Asia, Limited has issued an announcement regarding adjustments to its proposed spin-off and distribution. The adjustments, which include changes to the basis for the distribution, are expected to take effect on November 20, 2020. In addition, trading in the company's warrants has been suspended from November 3 to November 19, 2020, and will resume on November 20, 2020. The company warns that the value of the warrants may fluctuate significantly after the resumption of trading.

Key Takeaways:

  • The Bank of East Asia, Limited has announced adjustments to its proposed spin-off and distribution.
  • The basis for the distribution has been adjusted from 1 Sunac Services Share for about every 31.07 Shares held by a shareholder of the Company to 1 Sunac Services Share for every 31.08 Shares held by a shareholder of the Company.
  • Trading in the company's warrants has been suspended from November 3 to November 19, 2020.
  • The warrants will resume trading on November 20, 2020.
  • The value of the warrants may fluctuate significantly after the resumption of trading.
  • The value of the warrants may be subject to an impact of time decay, which may adversely affect investment in the warrants.
  • The company will issue a further announcement regarding details of its proposed adjustments to the warrants on or around November 19, 2020.
  • The suspension of trading in the warrants is expected to end on November 19, 2020.
  • The listing document for Sunac Services is available at https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1109/2020110900019.pdf.

Statistics:

  • Trading in the company's warrants has been suspended for 16 days in total.
  • The basis for the distribution has been adjusted from 31.07 to 31.08.
  • The value of the warrants may fluctuate by an unknown amount after the resumption of trading.

Sources:

  • Bank of East Asia, Limited (via Hong Kong Exchanges and Clearing Limited).
  • Sunac Services (via Hong Kong Exchanges and Clearing Limited).