Asian buyout firm CVC Asia Pacific has withdrawn its indicative offer to acquire shares in Peace Mark, a Hong Kong-listed watchmaker and retailer.
Last month, CVC Asia Pacific had made an indicative offer to buy shares of Peace Mark. The company informed the Hong Kong stock exchange that on 17 August, it had agreed to a “non-legally binding indicative offer” from CVC. Peace Mark had indicated in a meeting with its existing lenders last week that CVC was interested in acquiring a stake of about 30 percent in the company, according to Reuters.
However, CVC withdrew its offer on 29 August, Peace Mark said in a release to the stock exchange, without providing any reasons for the private equity firm's move.
Peace Mark also said that another “independent third party” has expressed interest in negotiating a possible subscription on shares but that any negotiations with the other potential investor have not begun.
The company's shares have dropped almost 70 percent since the end of July, when they were trading at HK$4.95 ($0.63; €0.45) a share, to HK$1.5 per share on 15 August, the last day before trading was suspended following the disclosure of CVC’s interest.
The steep decline has been partly attributed by analysts to a lack of clarity in the company’ annual report released at the end of July, Reuters reported.
Peace Mark manages a retail network through which it sells more than 100 mid-range and luxury watch brands in Greater China, besides also manufacturing and distributing timepieces.
CVC Asia declined to comment.