citic-pacific-to-spin-off-auto-and-food-distribution-unit

Citic Pacific to spin off auto and food distribution unit

Dah Chong Hong seeks to raise up to $589 million, but 77% of the proceeds will go to its parent company.

By Anette Jönsson

October 01, 2007

Shareholders of Citic Pacific will convene tomorrow October 3 to approve the spin-off of the companyÆs auto and food distribution business, Dah Chong Hong Holdings DCH, for a separate listing in Hong Kong.

Assuming a favourable outcome from the vote, DCH will be looking to raise between HK$3.55 billion and HK$4.6 billion $455 million to $589 million and will kick off the retail portion of its offering on Thursday. The trading debut is scheduled for October 17.

The offering marks the second time in six months that the Hong Kong-listed conglomerate conducts a public offering for one of its units as it seeks to divest non-core operations to realise cash for other...

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