Proview faces more requirements to resume trading in Hong Kong

Proview International must comply with new listing requirements, as the company plots an acquisition of an undisclosed electronics firm to kick-start its operations and resume trading of its shares in Hong Kong.

The failed computer monitor manufacturer is the parent of Proview Technology (Shenzhen), which received a record US$60 million settlement from Apple in June to end their lengthy dispute over the "iPad" trademarks on the mainland.

In a filing at the weekend, Proview International chairman Sun Min said the Hong Kong stock exchange's listing committee told the firm that its proposed acquisition "constitutes a reverse takeover under Rule 14.06" of the listing rules.

That made Rule 14.54 also applicable in Proview International's case, which meant the company "will be treated as if it were a new listing applicant", Sun said.

A reverse takeover is a type of merger used by private companies to become publicly traded without resorting to an initial public offering.

In November, Yu Ming Investment Management, Proview International's financial adviser, filed a revised resumption proposal that addressed the committee's concerns after Proview International's initial proposal was rejected on June 13. The revised proposal said the targeted acquisition had been in business for more than three years, had experienced management, and had been under the same ownership in the past financial year.