AVIC International Holding (HK) said it is mulling a possible acquisition of some unspecified non-aviation business on the mainland from its parent AVIC International Holding Corp, after its share price surged 21.8 per cent on Thursday.
“The discussion with the parent group on the possible acquisition is at a preliminary stage,” the firm said in a filing to Hong Kong’s stock exchange. “As at the date of this announcement, the company has not entered into any legally binding document with the parent group in relation to the possible acquisition.”
“The possible acquisition is subject to further negotiation and results of the due diligence and valuation, and it may or may not materialise,” it added.
Its shares slid 3 per cent to 65 HK cents at 9.47am on Thursday.
The possible acquisition is subject to further negotiation
AVIC International Holding Corp, controlled by state-owned aerospace and defence aircraft maker Aviation Industry Corporation of China, engages in aviation products export, trade and logistics, retailing, property and hotel management, electronic technology and resource development.