HK Stock Market Move | SUNART RETAIL (06808) surged more than 17% with Paragon's acquisition of SUNART RETAIL equity approved by the Market Regulatory Bureau.

SUNART RETAIL (06808) surged more than 17% in the morning, rising 13.37% to HK$1.95 with a trading volume of HK$514.88 million as of press time. On the news front, SUNART RETAIL announced that the offeror, Paragon Shine Limited, has received approval from the Market Supervision Bureau on the merger and acquisition of controlling stakes on February 10, 2025. Therefore, the conditions of the Market Supervision Bureau have been met. According to the sales agreement, the delivery shall not be later than 12 business days after the date of the Market Supervision Bureau's conditions being met (i.e. February 27, 2025) or any other date agreed in writing by the offeror and the seller. Huatai previously pointed out that since 2024, SUNART RETAIL has achieved positive results in its business transformation under the new management's strategic adjustments. By the first half of fiscal year 2025, the company has achieved a turnaround in comparison to the same period last year, and the expansion of new formats such as M member stores and hypermarkets continues to progress. The buyer of the equity transaction this time is a senior alternative asset management institution with rich experience in consumer goods industry investments, which may further assist the company in optimizing its operations. Stay tuned for further developments.