HK Stock Market Move | MAJOR HLDGS (01389) surged nearly 170% at one point upon resumption of trading; the offeror proposes a general offer at a discount of approximately 34%.

MAJOR HLDGS (01389) surged nearly 170% at one point today upon resumption of trading. As of press time, it was up 75% at HK$0.91, with a turnover of HK$1.9883 million. On the news front, MAJOR HLDGS and Max Premier, a major shareholder of MEXAN, jointly announced that MP, as the offeror, will acquire 53.77% of the shares from other shareholders for HK$102 million and make a mandatory unconditional cash offer at HK$0.3428 per share, representing a discount of approximately 34% to the suspension closing price of HK$0.52. The announcement stated that the maximum cash amount payable by the offeror upon full acceptance of the offer is approximately HK$87.84 million. The offeror intends to continue employing the existing management and employees of the group, intends to nominate new directors to join the board, and intends to maintain the listing status of the shares after the close of the offer. The offeror is owned 62% and 38% by Zhao Chuanrong and Chen Jixiang, respectively.