KKR promises not to list LCY Chemical in China, Hong Kong

Focus Taiwan
Date: 2018/12/19
By: Liao Yu-yang and Frances Huang 

Taipei, Dec. 19 (CNA) American investment firm KKR & Co. has promised not to list LCY Chemical Corp. in China or Hong Kong as a precondition for approval of its acquisition of the Taiwan-based chemical company.

Taiwan’s Investment Commission issued the green light for the acquisition on Tuesday after KKR pledged not to take LCY Chemical public in China or Hong Kong, according to Yang Shu-ling (楊淑玲), a spokesperson of the commission under the Ministry of Economic Affairs.

LCY Chemical said after hearing that the acquisition had been approved that its stock will be delisted at the end of January, but it has said previously that it planned to list again within five years after delisting.

The sale was first announced in July, when the company said KKR would buy all outstanding LCY Chemical shares for NT$47.8 billion (US$1.55 billion), or NT$56 per share, through KKR’s Luxembourg-based unit LuxCo.
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