HK Stock Market Move | Yankuang Energy Group (01171) rose nearly 3%, the company plans to acquire Highland Resources. The funds raised will be mainly used for the construction of the Muga Potash Mine project.

Yankuang Energy Group (01171) rose nearly 3%, as of the time of writing, it rose by 2.51% to 9.8 Hong Kong dollars, with a turnover of 59.4006 million Hong Kong dollars. On the news front, Yankuang Energy Group announced that on September 23, 2024, the company signed an "Implementation Agreement" and an "Equity Subscription Agreement" with Highland Resources. The company will acquire new shares of Highland Resources through asset injection and cash subscription, becoming the largest shareholder of Highland Resources after the transaction and controlling the board of directors (in this transaction). According to the "Equity Subscription Agreement", Highland Resources will issue new shares to several strategic investors, including the company, at a price of 0.50 Australian dollars per share, raising 220 million US dollars. The company intends to subscribe with an investment of up to 90 million US dollars. If other strategic investors subscribe for more than 130 million US dollars, the company's subscription amount can be reduced accordingly (cash subscription transaction). The funds raised will mainly be used for capital expenditures needed for the construction of the Muga project (Highland Resources' potassium salt mine project) and general working capital needs.