HK Stock Market Move | PENTAMASTER (01665) resumes trading with nearly 14% increase, receives privatization offer from major shareholder, suggesting a price of HK$1 per share.

PENTAMASTER (01665) resumed trading with a high opening of nearly 14%, as of the time of writing, it has risen by 13.75% to 0.91 Hong Kong dollars, with a trading volume of 260,300 Hong Kong dollars. On the news front, PENTAMASTER, together with the offeror Puga Holdings Limited and Pentamaster Corporation Berhad, jointly announced that on December 19, 2024, the offeror and the company entered into an implementation agreement. According to this, the offeror requested the board to present the proposal to the planned shareholders, proposing to privatize the company in an orderly manner under section 86 of the Companies Act. The cancellation price for each planned share is 0.93 Hong Kong dollars, representing a premium of 16.3% over the closing price per share of 0.80 Hong Kong dollars on the last trading day. According to the proposal, the company will also declare a special dividend of 0.07 Hong Kong dollars. Therefore, if the plan is binding and effective according to its terms and conditions, planned shareholders whose names appear on the company's register on the record date will receive a cash payment of 1.00 Hong Kong dollars per planned share. It is reported that as of the announcement date, Puga holds 17.38%, 67.02%, 6.00%, 3.60%, 3.00%, and 3.00% equity held by Beacon Path, Supari, Digimoc Holdings Limited, Grand Vision Venture Capital (Stock) Corporation, Mr. Chan Sin Yau, and Mr. Chan Sin Choi, respectively. Puga is a special purpose company established for the acquisition of planned shares under the proposal. As of the announcement date, Puga did not hold any investments or assets (except for cash funds allocated for the proposal). The sole director of Puga is Mr. Wang Liwei, who is currently a partner at Zhong Fang Capital and has more than 15 years of experience in corporate financing and accounting.