April 10, 2018 / 2:01 AM / a year ago

HK's Pou Sheng says plan to go private cancelled after shareholder opposition

HONG KONG, April 10 (Reuters) - Chinese sportswear retailer Pou Sheng International (Holdings) Ltd said its parent’s plan to take the company private had been cancelled as more than 10 percent of shareholders had voted against the proposal.

Its parent firm, Taiwan’s Pou Chen Corp had proposed taking Pou Sheng private in a deal valuing it at $1.4 billion.

Shares in Pou Sheng fell nearly 36 percent in early Tuesday trade on the news.

As part of the deal, group firm Yue Yuen Industrial (Holdings) Ltd had agreed to sell its 62 percent stake in Pou Sheng and to distribute a special dividend to its shareholders on completion of the deal.

There would now be no special dividend, Yue Yuen said in a separate statement, sending its shares sliding 11 percent.

Reporting by Donny Kwok; Editing by Edwina Gibbs

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