Sportswear distributor Fortei Holdings' shares have risen 9 per cent on resumption of trade after a conditional agreement by unlisted Century Legend to buy United Power Investment's (UPI) 51 per cent stake.
The deal, which will trigger a general offer, follows failed negotiations with other potential investors including Pearl Oriental Holdings.
Century, 90 per cent-owned by two investors with interests in restaurant, jewellery and fishery businesses, will pay $34.69 million for the shares at 17 cents each, a 35.4 per cent discount to Fortei's audited net asset value at the end of last year.
About $15 million of the proceeds will be used by Tasmanian Treasure - 45 per cent held by UPI - to pay off a loan to China Sky Finance.
The remainder will be used by UPI, a recession-hit restaurant operator, to reduce debt and boost working capital.
China Sky is wholly owned by another Century shareholder, Samuel Tsang Chiu-mo, who holds 5 per cent of Century.
