HK Stock Market Move | SMC ELECTRIC (02381) rose nearly 20% in early trading; Star Mega Holdings has officially taken control and stated it has no intention to privatize the company.

SMC ELECTRIC (02381) rose nearly 20% in early trading. As of press time, it was up 19.12% at HK$0.405, with a turnover of HK$3.0028 million. On the news front, Star Mega Holdings has completed the acquisition of 1.4 billion shares of SMC ELECTRIC, representing 70% of the company's total issued shares, and will subsequently make a mandatory unconditional cash offer. Public information shows that Star Mega Holdings is indirectly wholly owned by Tinno Mobile, a leading domestic smart terminal enterprise, while Tinno Mobile is 97.0149% held by Tinno Technology Group. It is worth noting that Star Mega Holdings has explicitly stated that it intends to continue SMC ELECTRIC's existing businesses, has no intention to privatize the company, and plans to maintain the company's listing status on the Stock Exchange. This means the transaction is not a traditional "shell buyout and delisting" or "privatization" arrangement, but rather leans toward achieving a strategic entry by industrial capital through a transfer of control.