Reports of HK$6.7 billion windfall push shares of Nike supplier Yue Yuen to historical high
Company’s stock rises by 20 per cent to HK$38.4 before closing at HK$38.15
The company’s share price rose by 20 per cent to HK$38.4, the highest level for the manufacturer since its listing in Hong Kong in July 1992, before dropping slightly to close the day at HK$38.15.
The rally came after it announced on Sunday that it would receive the HK$6.7 billion windfall by selling its entire 62.41 per cent stake in its Chinese footwear retail unit, Pou Sheng International Holdings, to its Taiwan-listed parent Pou Chen Corporation as part of a HK$10.9 billion privatisation plan.
“Yue Yuen has said it plans to deliver part of the windfall in a special dividend to shareholders, which has led investors to chase the stock for its potential dividend,” said Jeffrey Chan Lap-tak, the founding partner of Oriental Patron Financial Group.
Pou Sheng International’s share price also rose by 31 per cent to a one-year high of HK$2.02 on Monday morning, which is close to the price offered by Pou Chen – HK$2.03 per share – to all shareholders as it buys back their stock to cancel Pou Sheng International’s listing status. It closed on Monday at HK$1.99, up 29 per cent.