MS Group (HKG:1451) became subject to a mandatory unconditional cash offer after a change in ownership structure, according to a Tuesday Hong Kong bourse filing.
Shares of the plastic bottle manufacturer were up nearly 67% in Wednesday morning trade.
Chairman Chau Ching, through Ching Wai Holdings, sold a 36.7% stake in MS Group, or 75 million shares, to L.V.E.P. for HK$60.0 million, or HK$0.80 apiece.
L.V.E.P. is wholly owned by executive director and chief executive Chung Kwok Keung Peter, who, together with parties acting in concert, held about 35.5% of MS Group before the transaction.
Following completion, their combined stake increased to about 72.2%, triggering a mandatory unconditional cash offer, the filing said.
Rainbow Capital, on behalf of L.V.E.P., offered to acquire the remaining shares at HK$0.80 each and to cancel outstanding share options.
The offer price represents a discount of about 35% to the stock's last closing price of HK$1.23 on April 20, according to the filing.