Sports shoe manufacturer Symphony Holdings saw its share price surge 17.33 per cent yesterday on news that a subsidiary of rival Yue Yuen Industrial had taken control of the company.
Bucking yesterday's overall market trend in the SAR, the counter rose 26 HK cents to close at HK$1.76.
The surge came after Yue Yuen, which makes Nike shoes, announced that Well Success Investment had acquired 82.72 million Symphony shares, at prices ranging from HK$1.25 to HK$1.75. Well Success is 50 per cent held by Frensham Investments which is fully controlled by Yue Yuen.
The remaining 50 per cent stake is held by First Dynamic, which is controlled by a group of Symphony's non-executive directors.
The acquired shares represent 39.74 per cent of Symphony's share capital, making Well Success the largest single shareholder.
As the purchase exceeds the 30 per cent general offer threshold of the Takeovers Code, Well Success is obliged to make a conditional cash offer of HK$1.75 per share to the remaining Symphony shareholders.
The offer price represents a discount of 0.56 per cent to yesterday's close.
