Zhitong Financial APP learned that Chen Gang Technology (08131) soared by more than 150%, up 156.52% to HK $0.11 as of press time, with a turnover of HK $1.3 million. The company's share price hit a new stage high.
On the news side, Chen Gang Technology and the offeror BRAVO MERIT MANAGEMENT GROUPS LIMITED jointly announced that on August 29th, the offeror entered into a sale and purchase agreement with the seller (Maximizer International Limited and Pacific East Limited), in which the offeror agreed to acquire and the seller agreed to sell the unsold shares (including 356 million common shares) for a total consideration of HK $27 million, equivalent to about HK $0.0759 per share for sale.
Immediately before completion, the shares for sale (that is, all the shares held by the seller) accounted for about 74.81% of the company's voting rights (assuming that no convertible preferred shares were converted into common shares); and 59.39% of the company's voting rights (assuming that all convertible preferred shares are converted (according to an irrevocable undertaking, Special Advisor has promised not to convert until the end of the offer). According to the Sale and purchase Agreement, the completion was completed on August 30, 2023.
Under rule 26.1 of the Takeovers Code, the offeror is required to make an unconditional mandatory comprehensive cash offer for all issued shares (except those owned or agreed to be acquired by the offeror and those acting in concert with it). The offer price of HK $0.0759 per share in cash represents a premium of about 65.00% over the closing price of HK $0.0460 per share on the Stock Exchange on 29 August (the last trading day).
The company has applied for the resumption of trading in the common shares on the Stock Exchange with effect from 09:00 on 8 September 2023.