Hang Fung Gold Technology will acquire 49.9 per cent of a high-technology company controlled by Ben Fok Chun-yue for HK$187 million. Hang Fung will issue 1.63 billion new shares to the company - New Epoch Holdings - at 11.4 HK cents each. After the transaction, Mr Fok - son of prominent businessman Henry Fok Ying-tung - will hold 34.1 per cent of Hang Fung. Hang Fung chairman Lam Sai Wing's holding in the company will be diluted to 35 per cent from 53.1 per cent. Mr Fok's remaining stake in New Epoch Holdings was not disclosed. Hang Fung's shares yesterday closed at 23.4 HK cents, up 36.8 per cent. Brokers said the shares would have gained even more if the original proposal to buy 100 per cent of New Epoch had been realised. Hang Fung had planned to issue 50 per cent of new shares in exchange for New Epoch, which effectively allows a backdoor listing. Mr Fok, managing director of New Epoch, confirmed a backdoor listing was one option considered but it was altered to 'better suit both shareholders'. Acquiring all of New Epoch's shares would have been treated as a new listing under the clause of a 'very substantial acquisition' by the Securities and Futures Commission. However, under the present structure, Hang Fung has priority in acquiring the remaining stake in New Epoch within three years and can avoid being considered as a new listing if the acquisition takes place after the second year. Phenomenal, a private equity investment firm which holds 14.4 per cent after the transaction, will be considered as a connected party and a public float of Hang Fung will be reduced to 16.5 per cent, lower than the 25 per cent minimum requirement. Mr Lam said the company could address the issue by placing new shares, but would not rule out disposing its stake in Hang Fung. New Epoch's assets include www.chinatradeworld.com , a joint venture set up with a subsidiary of the Ministry of Foreign Trade and Commerce Co-operation. The trading portal, in which New Epoch owns 49 per cent, has provided online sourcing for more than 20 mainland industries since February. Mr Fok said the company was looking to begin other business-to-business initiatives with United States and Canadian buyers, with an announcement expected within two months.