June 23, 2023
These days, Hong Kong listed company CHESIR (Global New Materials Holdings Co. Ltd.) (HSEX: 06616) filed an information circular related to the tender offer regarding the acquisition of CQV Co. Ltd., a company listed in South Korea (KOSDAQ: 101240), and its valuation. The information circular is a mandatory publication in preparation of an extraordinary shareholder meeting and shareholder resolution to approve the transaction.
Global New Material International Holdings Ltd is a China-based investment holding company principally engaged in the manufacture and sales of pearlescent pigment. CQV Co Ltd manufactures pigment materials and electronic materials, including pearlescent pigments consisting of laminar crystals and ceramic compound powder.
The valuation report of CQV was provided by Avista Valuation Advisory Limited. It includes – among other – a pre-deal purchase price allocation. Based on comparable data from MARKABLES, Avista determined appropriate royalty rates of 4% and 0.5% for CQV’s industrial property (patents and technology) and trademarks.
The full text of the information circular including valuation reports can be downloaded here.