CDIB-Led Prime Express Proposed Acquisition of Jintex Corporation Ltd. (TPEX: 1787)Hong Kong, March 27, 2019
Prime Express International Limited (“Prime Express”), the special purpose vehicle of a consortium led by CDIB Capital, is pleased to announce that it intends to acquire all issued and outstanding common shares of publicly-listed Jintex Corporation Ltd. (“Jintex”, TPEX: 1787) for NT$27.50 per share, representing a total market capitalization of NT$1.87 billion (US$60.7 million).
The offer price represents a premium of 10.4% to Jintex’s closing price on March 22, 2019, the last trading day prior to the transaction announcement. It also represents a premium of 22.2%, 26.0%, and 25.3% over the 60-day, 90-day, and 120-average closing prices, respectively.
The initial tender offer period will last from March 25, 2019 through May 13, 2019, with the minimum threshold of success for total shares tendered set to be equivalent to 51% of Jintex’s total outstanding shares (34,623,138 shares out of 67,888,504 total shares outstanding).
Prime Express, the offeror of the tender, is an investment company that is owned by a consortium of investors that include CDIB Capital Asia Partners L.P., Ms. Juang, and Mr. Weng, both directors of Jintex.
Mr. Wu Chung-Yi Steven, Managing Director of CDIB Capital and Chairman of Prime Express, said “Jintex has been in the specialty chemical sector for 40 years, and has become one of the biggest companies in Taiwan that manufactures textile and leather auxiliaries for leading brands globally. Similar to many domestic companies in Taiwan, Jintex is facing a number of challenges, including intensified competition from China and around the world, migration of business opportunities to other regions in Asia, as well as succession issues that are common for mid-sized companies in Taiwan. CDIB Capital constantly seeks partnership opportunities where we can help companies to grow their businesses, boost the corporate culture, and increase long-term value for all stakeholders. We intend to leverage our industry expertise and extensive local knowledge to support the management, focusing on operational excellence and bringing Jintex to the next level of growth. In addition to further strengthening the company’s R&D capabilities, we would also work closely with the management to recruit international talents with the goal of establishing Jintex as a regional leader.”
Lionel de Saint-Exupéry, Chairman and CEO of CDIB Capital, added “We are delighted to partner with Jintex, one of Taiwan’s leading companies in the specialty chemical sector with unique proprietary competence in developing high end eco-friendly chemical auxiliary agents. Over its 40 year history, the company has strategically expanded its geographic footprint to encompass the entire APAC-region. We believe that the partnership between CDIB Capital and Jintex will fully support the company’s ambition to become a regional leader in terms of size and technology. This is an exciting opportunity to work alongside an exceptional management team to capture growth opportunities in Taiwan and beyond.”
The transaction is still subject to market acceptance of the tender offer, customary closing conditions and regulatory approvals. Upon completion of the transaction, Jintex will become a private company, and its shares will no longer be traded on the Taipei Exchange.
About Jintex Corporation Ltd.
Founded in 1978, Jintex is a leading manufacturer specialized in the production and distribution of textile and leather chemical auxiliary agents, which play an important role in endowing textile and leather products with various functional or technical qualities. The company has a full suite of products that address the increasingly environmentally conscious and regulatory compliant mandate international brand companies are compelled to satisfy. The company was a first mover in Taiwan to adopt and adhere to these new global standards for sustainability and has already secured top accreditations / certifications in this respect (i.e. Bluesign, ZDHC, etc.). Jintex will maintain its corporate headquarters in Taipei, its existing global distribution and sales networks and its production plants in Taiwan, mainland China, India, Indonesia and Vietnam.
About CDIB Capital
CDIB Capital is a leading Asian private equity investor focused on middle market growth capital transactions. We invest in compelling growth-oriented companies in consumer/retail, value added manufacturing, and new services, seeking to capitalize on cross market opportunities in the Asia-Pacific region. We are an affiliate of China Development Financial (“CDF”), one of the largest and most established merchant banking groups in Greater China with over US$88 billion in assets.
CDIB Capital is headquartered in Hong Kong and has offices in Taipei, Shanghai, Seoul and New York. For more information, please visit our website at www.cdibcapital.com.
 The figures set out above are based on Bloomberg data as of March 20, 2019