Red-chip China Resources Enterprise (CRE) is expected to announce plans to acquire its parent's textile distribution and logistics businesses this weekend in a bid to boost investor faith in the company, according to analysts.
Shares in the company were suspended from trading yesterday at the request of the company due to the pending announcement of price-sensitive information.
The counter closed at HK$8.05 on Thursday.
CRE is a blue-chip conglomerate, ultimately controlled by the Chinese Ministry of Foreign Trade and Economic Co-operation.
Market rumours suggested CRE would pay between HK$1 billion and HK$1.5 billion to acquire the logistics-related and textile distribution assets from parent China Resources (Holdings).
The rumoured acquisition price would represent a price-earnings ratio of between five times and six times, analysts said.