HK Stock Market Move | SMC ELECTRIC (02381) has surged over 37% in late trading as Xingzhao Holdings completes the acquisition of a 70% stake in SMC ELECTRIC.

SMC ELECTRIC (02381) surged over 37% in the final trading session. As of the time of writing, it is up 37.29%, priced at HKD 0.405, with a trading volume of HKD 13.7713 million. In terms of news, SMC ELECTRIC and the offeror, Xingzhao Holdings, jointly announced that the offeror completed the acquisition of 1.4 billion shares of the company on September 8, amounting to 70% of the total issued shares as of the date of this joint announcement, at a total price of HKD 154 million, which is equivalent to HKD 0.11 per share sold. Public information shows that Xingzhao Holdings is wholly owned by Tianlong Mobile through indirect means, while Tianlong Mobile is 97.0149% owned by Tianlong Technology. Xingzhao Holdings has clearly stated that it plans to continue SMC ELECTRIC's existing business, has no intention of taking the company private, and aims to maintain the company's shares listed on the Hong Kong Stock Exchange. This indicates that this transaction is not a traditional "shell acquisition for delisting" or privatization arrangement, but rather leans towards a strategic entry of industrial capital through a transfer of control.