HK Stock Market Move | LEOCH INT'L(00842) opens up nearly 13%, plans to spin off Leoch Energy Inc. for separate listing on the US stock exchange.

LEOCH INT'L (00842) opened nearly 13% higher, rising 12.88% to 1.84 Hong Kong dollars at the time of publication, with a turnover of 833,500 Hong Kong dollars. On the news front, on February 12, LEOCH INT'L announced that the company had submitted a proposal to the Stock Exchange for a suggested spin-off and separate listing of its subsidiary, Leoch Energy Inc., on a US securities exchange. The company has received approval from the Stock Exchange to proceed with the proposed spin-off. As of the date of this announcement, the spin-off company is a direct wholly-owned subsidiary of the company. The proposed spin-off will involve physical distribution of all the shares of the spin-off company held by the company's shareholders. After the proposed spin-off and distribution are completed, the spin-off company will be separated from the company, creating a structure where both the company and the spin-off company are listed concurrently, and the company's shareholders will own shares in the spin-off company. The spin-off company is an exempted company registered under the laws of the Cayman Islands and is a direct wholly-owned subsidiary of the company as of the date of this announcement. The main business of the spin-off company group is the sale of standby batteries, starting batteries, and power batteries in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific region (excluding mainland China, Hong Kong, and Macau).