KUALA LUMPUR: The proposed privatisation of Hong Kong-listed Gouco Group Ltd by GuoLine Overseas Ltd has fallen through.

In a joint filing with the Hong Kong Stock Exchange on Thursday, Guoline and Guoco announced that the proposed scheme arrangement for the privatisation had failed to obtain 75% of the shareholders vote at the court meeting.

Subsequently, the proposal lapsed and would not be implemented. 

GuoLine, a unit of Hong Leong Co (M) Bhd, has a 73% majority stake in Guoco.

On June 29, 2018, it had proposed the scheme arrangement in a bid to take Guoco private and de-list it from the stock exchange.

The scheme entailed the payment of a special dividend entailing 291.12 million shares in Hong Leong Financial Group Bhd in return for shares Guoline did not own in the company

The amount payable assuming all the entitled shareholders had opted for a cash alternative would have been about HK$12.49bil

In view of the announcement, trading in Guoco's shares was halted on Thursday, but resumed on Friday.