Shares of apparel retailer Hang Ten surged to a 12-month high yesterday on news of a takeover bid by Victor Fung Kwok-lun and his brother William, owners of trading firm Li & Fung.
The stock jumped 95 HK cents, or 55.88 per cent, to HK$2.65 yesterday, edging closer to the cash offer of HK$2.70 per share. The offer values Hang Ten's more than 982 million shares in issue at HK$2.65 billion.
The buyout is being conducted through the Fungs' privately owned Li & Fung Retailing. The brothers said the Hang Ten group's brands - which include Hang Ten, Arnold Palmer and H&T, would help the company expand into retail casual fashion.
Hang Ten's controlling shareholders, garment maker and retailer YGM Trading and Dennis Hung Ging-kong and his family, will sell a combined 69.9 per cent stake to Li & Fung. The deal will result in a HK$340 million one-off gain to YGM.
YGM shares yesterday rose HK$1.20, or 6.83 per cent, to close at HK$18.76.
However, YGM said it was trying to regain 8.2 million missing Hang Ten shares, or 0.83 per cent of the issued share capital, from an undisclosed law firm. The shares were placed with the firm in 2003 but were found to be missing in August.
The law firm is co-operating in their recovery, but it is uncertain when and how many shares will be returned.