HK Stock Market Move | KPA-BM HLDGS (02663) afternoon gain widens to over 30%; controlling stake changes hands, receives general offer at approximately 13.8% discount

KPA-BM HLDGS (02663) surged sharply after resuming trading today, with afternoon gains widening to over 30%. As of press time, it was up 29.6% at HK$0.81, with turnover of approximately HK$22.75 million. On the news front, on the evening of November 4, KPA-BM HLDGS announced that the offeror, Daxiang Energy Holdings, acquired approximately 397.19 million shares from Chairman Yip Pak Hung, CEO Wai Yat Kin, and Cheng Wing (the sellers), representing approximately 71.32% of the total issued share capital, for a total cash consideration of approximately HK$213.97 million. The offeror acquired 8.82 million BS sale shares free of any encumbrances from Wai Yat Kin and Wu Yuzhen, representing approximately 1.58% of the total issued share capital, for a total cash consideration of HK$4.7513 million. Immediately upon completion, the offeror and parties acting in concert must, in accordance with the rules, make a mandatory unconditional cash offer for all issued shares at a cash offer price of HK$0.5387 per share, representing a discount of approximately 13.8% to the closing price of HK$0.625 before the trading suspension. The offeror is owned by Hu Rong. The offeror intends to maintain the company's listing status on the Stock Exchange.