Construction firm Shun Cheong Holdings has successfully fought off a second legal bid by a strategic investor to prevent a share placement after a ruling in the High Court.
George Kwok Shun-on, the second-largest Shun Cheong shareholder with a 12.61 per cent stake, attempted to thwart a placement to enlarge the company's issued shares by 19.92 per cent.
The placement aims to raise net proceeds of HK$15.3 million by issuing 77 million new Shun Cheong shares at 20 HK cents each. Shun Cheong shares fell 1.96 per cent yesterday to 25 HK cents.
In July, Mr Kwok mounted a successful legal challenge to prevent a similar placement by Shun Cheong. Mr Kwok was fired from the board of directors following the first legal battle.
Mr Kwok said the reasons for yesterday's court decision would be given on October 16 and he would take legal advice about the possibility of further action.
Shun Cheong's latest placement plan still required approval from the stock exchange, according to Mr Kwok.
