HK Stock Market Move | COASTAL GL (01124) surged as much as 100% upon resumption of trading, after receiving a general offer from Deep Water Strategy at a nearly 30% discount.

COASTAL GL (01124) was suspended from trading since August 24. After resuming trading today, its shares surged, reaching an intraday high of HK$0.22, double the closing price before the suspension. As of press time, the stock was up 70% at HK$0.187, with a turnover of HK$3.4901 million. On the news front, COASTAL GL and DEEP WATER STRATEGY LIMITED (DESL), wholly owned by Cao Mengjie, jointly announced that DESL, as the offeror, entered into a sale and purchase agreement with the receiver and the lender to acquire approximately 36.93% of the equity for HK$11.88 million, and will make a mandatory conditional cash offer in accordance with the rules at an offer price of HK$0.0776 per share, representing a discount of approximately 29.5% to the suspension closing price of HK$0.11. The company stated that the offeror has confirmed it will not increase the offer price, and the maximum cash payable upon full acceptance of the offer would be approximately HK$20.29 million. According to the announcement, the offeror Cao Mengjie has over 18 years of extensive experience in engineering, construction and architectural design. In addition, since 2022, he has started his business and become the chief executive officer of Hangzhou Ruchu Xindan Technology Industry Co., Ltd., Hangzhou Ruchu Enterprise Management Co., Ltd. and Hangzhou Ruchu Bocheng Technology Co., Ltd.