Airwork to delist next week after Zhejiang Rifa takeover

Rifa said earlier this month it was exercising its compulsory acquisition rights after it became the dominant owner.

Airwork Holdings will quit the NZX main board on Nov. 15 now that Rifa Jair Company, a unit of China's Zhejiang Rifa Holding, has exercised its compulsory acquisition rights in full takeover over the aviation services firm.

Rifa made a full takeover for Airwork in September, offering shareholders $5.20 per share in what was a fait accompli having signed lock-up agreements giving it more than 90 percent, meaning it could automatically enforce Takeovers Code mop-up provisions. The Chinese company built up a 75 percent stake in the Auckland-based aircraft services business after a $5.40 per share partial offer went unconditional earlier this year.

Earlier this month the company said it was exercising those compulsory acquisition rights after it became the dominant owner. The takeover offer closes at 11.59 pm on Nov. 10 and shareholders have until that time to accept the offer.

Airwork said it understands NZX intends to suspend trading in Airwork shares on Nov. 10 and shareholders have until Nov. 24 to return a signed transfer in response to the compulsory acquisition notice, after which time any outstanding shares will be transferred to Rifa and payment for the shares held by Airwork pending a claim by the former holder.

While Zhejiang Rifa previously signalled its intention to delist, it doesn't plan to change Airwork's board, management or staff, and will keep the company's headquarters in Auckland.

The stock last traded at $5.16 and are up 5.3 percent so far this year.