The Hong Kong Stock Exchange today issued a notice to say that shares in China Hongqiao Group are in a trading halt. The notice did not say for how long the suspension will remain in place.
According to a Press Release from Hongqiao, the trading halt was requested by them. Hongqiao and a company known as Lufeng Aluminium Foil Co, owned by Mr Yu Rongqiang, have entered into an MOU, the purpose of which is for Hongqiao to take a 28% interest in Lufeng, which is also known as Loften. As many as 261 million shares are involved in the transfer, which had been planned for some time. Total value of the transaction is said to be RMB900 million, while Hongqiao is laying down a cool RMB500 million as a deposit on the transaction. Although the press release speaks of some possibility that the transaction may not proceed, Hongqiao would not have made such a large deposit if that were the case.
According to the press release, Hongqiao considered that the transaction would likely have a big impact on its share price, so it sought to have trading suspended. The trading halt will be lifted tomorrow.
No comments
Be the first to leave a comment.