HK Stock Market Move | TRIO IND ELEC (01710) plunges over 20% upon resumption of trading; Luxshare Precision Industry plans to acquire 75% equity of the company, which may trigger a mandatory general offer.

TRIO IND ELEC (01710) plunged after resuming trading this morning, following a cumulative gain of over 1.85 times in September. As of press time, it fell 19.9% to HK$1.65, with a turnover of HK$12.916 million. On the news front, TRIO IND ELEC announced that on last Tuesday (29th), the board was informed that Luxshare Precision Industry, as a potential buyer, and TRIO IND ELEC Holdings, as a potential seller, entered into a non-legally binding memorandum of understanding regarding a potential transaction for the possible sale and purchase of 75% equity interest in the group. The group stated that, for the purposes of the Takeovers Code, the offer period commenced last Friday (October 2). If the potential transaction proceeds to completion, it will result in a change in control of the group and trigger a mandatory general offer under Rule 26.1 of the Takeovers Code. Pursuant to the memorandum of understanding, the potential seller has committed to an exclusivity period of two months and shall use its best endeavors to assist the potential buyer in conducting due diligence on the group.