RNA Holdings has regained some of its lost lustre after blue chip Cheung Kong (Holdings) said it would become the single largest shareholder in the gold refiner.
RNA shares jumped almost 19 per cent yesterday before closing the day 2.7 per cent higher at 3.8 HK cents.
A decision by Cheung Kong, announced on Wednesday, to buy a 26 per cent stake in RNA for HK$100 million boosted investor confidence in the company.
RNA is part of the Tem Fat Hing Fung (Holdings) gold-bullion trading group, which is being restructured via a complex package of debt-to-asset swaps.
Brothers Raymond Chan Fat-chu and Alexander Chan Fat-leung are the biggest shareholders in the investment holding firm, Tem Fat, which in turn holds interests in RNA and small property developer Can Do Holdings.
Since April, the three companies have been locked in negotiations with Cheung Kong and its associate, Hutchison Whampoa, over a debt restructuring package.
Under the final deal, Cheung Kong and Hutchison would help salvage profitable RNA and Can Do and abandon a rescue of debt-laden Tem Fat.
