HK Stock Market Move | SMC ELECTRIC (02381) rose over 6% in late trading; Star Mega Holdings has become the controlling shareholder, and a mandatory unconditional cash offer is about to be launched.

SMC ELECTRIC (02381) rose over 6% in late trading. As of press time, it was up 6.41% at HK$0.415, with a turnover of HK$1,833,300. On the news front, SMC ELECTRIC recently announced that Star Mega Holdings has completed the acquisition of 1.4 billion shares of SMC ELECTRIC, representing 70% of the company's total issued shares, for a total consideration of HK$154 million. Upon completion of the share transfer, SMC ELECTRIC's controlling shareholder has officially changed to Star Mega Holdings. The above acquisition triggered a mandatory general offer obligation, and Star Mega Holdings will make a general offer at the same price per share. It is understood that Star Mega Holdings is indirectly wholly owned by Tianlong Mobile, a leading domestic intelligent terminal enterprise, while Tianlong Mobile is 97.0149% held by Tianlong Technology Group. Star Mega Holdings has explicitly stated that it intends to continue SMC ELECTRIC's existing business, has no intention of privatizing the company, and plans to maintain the company's listing status on the Stock Exchange. This transaction is more inclined toward achieving a strategic entry by industrial capital through a transfer of control.