Cheong Ming Holdings' shares jumped 17.5 per cent yesterday, bolstered by news United States-based Sega.com had effectively gained control of the company through an overnight placement by the major shareholder.
The manufacturer of paper cartons and packing boxes finished the session at HK$1.88. It had begun trading again after being suspended for a day.
The Tuesday suspension was due to the planned placement by the Lui family's Harmony Link Corp.
Chairman Lui Chi and his family placed 98.188 million shares with independent investors, reducing the family's interest to 20.45 per cent, from 40.98 per cent.
Cheong Ming's shareholders yesterday also approved the issue of an additional 16 million new shares at a discounted HK$1.36 each to Sega.com. After the placements, Sega.com's interest will increase to 34.49 per cent, an increase of 2.12 per cent, making it the largest shareholder.
The US company is the Internet arm of Japan-based games-maker Sega Enterprises, which owns 52 per cent.
Sources said the arrangements were designed to allow Sega.com to control Cheong Ming without triggering the 35 per cent takeover threshold which comes in under the takeovers and mergers code.