HK Stock Market Move | CONTEL (01912) surges more than 30% recently announced that the offeror will discount about 34.82% to fully purchase the offer.

CONTEL (01912) surged more than 30%, rising 31.14% as of the time of writing, to 2.19 Hong Kong dollars, with a trading volume of 19.3874 million Hong Kong dollars. On the news front, CONTEL recently announced that on May 5th, it issued approximately 271 million shares to subscriber Zhuangyan Investment International Limited at 0.365 Hong Kong dollars per share; on June 8th, it entered into a subscription agreement to sell 58.205 million shares through a placing agent at the subscription price of 0.365 Hong Kong dollars per share. The total proceeds amount to approximately 1.202 billion Hong Kong dollars, with a net amount of around 1.197 billion Hong Kong dollars. Following the completion of the subscription and placement, the offeror and its concerted parties will hold approximately 58.81% of the enlarged share capital of CONTEL. The offeror and its concerted parties are required to make an unconditional cash offer for all issued shares. The offer price is 0.365 Hong Kong dollars per share, representing a discount of approximately 34.82% to the closing price of 0.56 Hong Kong dollars before the suspension. The offeror is an investment holding company. The sole legal and beneficial shareholder, as well as the sole director, is Zhuang Hezhong, who is a businessman with over 10 years of experience in the consumer electronics industry. He currently owns and operates companies engaged in the import and export trade, wholesale, and retail of consumer electronics integrated circuit components and semiconductor modules in China and other Asia-Pacific countries. Over the past 10 years, Zhuang has accumulated extensive professional knowledge in supply chain management, cross-border logistics, quality control, and customer relationship management.