Sunning to subscribe shares of Techtronic Industries for $78.16 million in share placement

Thu. July 30, 2009; Posted: 02:45 PM

Jul 30, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- TTNDY | Quote | Chart | News | PowerRating -- Sunning, Inc. has agreed to subscribe an aggregate of 90 million new shares of Techtronic Industries Co., Ltd., a Hong Kong-based manufacturer of consumer and professional products for the home improvement and construction industries, for approximately HKD605.7 million ($78.16 million).

Sunning is a Cayman Islands-based company owned by Horst Julius Pudwill, the Chairman of Techtronic.

The subscription price of HKD6.73 ($0.87) per share represents a discount of approximately 4.8% to the closing price of HKD7.07 ($0.91) and 4.9% to the average closing price of HKD7.08 ($0.91) per share on the last trading day and for the last five trading days, respectively. The subscription shares represent approximately 6% and 5.7% of the existing issued share capital and enlarged share capital following the subscription, respectively. The transaction is expected to close on August 10, 2009.

Merrill Lynch Far East Limited, Citigroup Global Markets Asia Limited, and The Hongkong and Shanghai Banking Corporation Limited together are acting as placing agents for the transaction.

Deal Value (US$ Million) 78.16
Deal Type                Private Placement
Sub-Category             None
Deal Status              Announced: 2009-07-29

Deal Participants

Target (Company)   Techtronic Industries Co., Ltd.
Acquirer (Company) Sunning, Inc.

Deal Rationale

Techtronic intends to use proceeds to repay the existing indebtedness and for general working capital purposes.

% Acquisition             6%
Offer Price ($ per share) 0.87
No. Shares Issued         90000000

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