Hang Fat Ginseng shares soar amid talk of possible takeover
Shares of Hong Kong ginseng trader Hang Fat Ginseng soared as much as 240 per cent on Friday morning after it resumed trading, with the company saying it was in talks with potential investors about a possible takeover deal.
The company traded up 103 per cent at 7 HK cents at 10.39am, after touching an early high of 12 HK cents.
Hang Fat Ginseng’s shares were suspended from trading on January 28 after plunging more than 90 per cent in one day, possibly triggered by margin calls, according to analysts.
The company announced earlier on Friday that one of its major shareholders had sold HK$24 million worth of shares, or a 6.16 per cent stake in the company. Meanwhile, the company’s controlling shareholders were in talks with potential investors about a possible deal that “may lead to a change in control of the company and a mandatory general offer under the Takeovers Code”, it said.
Earlier this week, Hang Fat said in a statement that its chairman had pledged his shares to secure margin loans due to personal financial difficulties.