here it is
July 17 (Bloomberg) -- Easyknit Enterprises Ltd., a Hong Kong-based maker of knitted textiles, agreed to merge with Wits Basin Precision Minerals Inc., a Minneapolis-based prospector, as part of the Asian company's plan to diversify its business.
Easyknit will issue 3.35 million shares, valued at HK$8.8 billion ($1.1 billion), to Wits Basin shareholders in the merger, the company said in a statement to the Hong Kong stock exchange today. Easyknit's shares, suspended since April 20, will resume trading tomorrow.
``The merger will allow Easyknit to diversify into mining, a sector in which the directors foresee attractive growth prospects, and reduce its reliance on its current businesses which operate in a highly competitive environment with no significant barriers to entry,'' the company said in the statement.
Easyknit, unprofitable since the first half of its 2005 financial year, said Dec. 1 that it was seeking to enter gold and minerals mining, starting merger talks with Wits Basin. It had also agreed to invest in China's SSC-Sino Gold Consulting Co.
Easyknit International Holdings Ltd., Easyknit Enterprises' largest shareholder, will hold 19 percent of the merged company, the statement said. Wits Basin will be the surviving entity, with its assets the main ones of the merged company, it said.
The shares of Easyknit International, also suspended since April 20, will resume trading tomorrow, the statement said.
To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net
Last Updated: July 17, 2007 08:44 EDT
