HK Stock Market Move | KFM KINGDOM (03816) resumes trading with a gap-up opening of over 14%, raising HK$360 million through convertible bonds, and receives a full takeover offer from Luxshare Precision Industry.

KFM KINGDOM (03816) resumed trading with a gap-up opening of over 14%, rising 14.54% as of press time to HK$5.2, with a turnover of HK$540,800. On the news front, KFM Kingdom announced the issuance of convertible bonds with a principal amount of HK$360 million. Upon full exercise of the conversion rights at a conversion price of HK$2 per share, a total of 180 million conversion shares will be issued, representing 30% of the issued share capital. The group expects to use approximately 25% of the net proceeds from the convertible bond issuance for and to expand manufacturing investments in Suzhou, China and Malaysia; approximately 50% for general working capital; and approximately 25% for repaying bank loans. In addition, Hong Kong Luxshare will acquire 342 million shares from the company's controlling shareholder KIG Real Estate, representing 57% of the issued share capital, at a total consideration of HK$684 million, equivalent to HK$2 per share. Upon completion of the transaction, Hong Kong Luxshare and its concert parties will hold 57% of the equity interest and will be required under the rules to make a mandatory general offer for all issued shares. The cash offer price is HK$2 per share. Hong Kong Luxshare will not increase the offer price.