China Resources Group continued its restructuring work yesterday, announcing that its Hong Kong-listed unit, China Resources Logic, will sell its entire semiconductor business to another public subsidiary, CSMC Technologies Corp, for up to HK$2.18 billion in stock.
In the past year, the mainland conglomerate has made several moves to focus on the technology, textile, cement, retail, food and brewery sectors.
Based on CSMC's closing price of 68 HK cents on November 16, the last trading day before the stock was suspended from trading, the acquisition price will be in the range of HK$2.07 billion to HK$2.18 billion.
CSMC will issue 3.05 billion to 3.21 billion shares to CR Logic to buy the semiconductor business, according to the company's statement posted on the Hong Kong stock exchange yesterday. After the transaction, CR Logic will no longer be involved in the semiconductor business.
CR Logic closed 8.61 per cent lower yesterday at HK$1.38 after it resumed trading in the afternoon. CSMC was unchanged at 68 HK cents.
After the transaction, CR Logic will hold 72.51 per cent stake in CSMC.
