Continental Aerospace to Sell Main Revenue Driver; Distribute Proceeds to Shareholders; Shares Jump 78%
Continental Aerospace Technologies (HKG:0232) said it would wind up the company after agreeing to sell Motto Investment to Mobile Acquisitionco in a $535.4 million deal, according to a Friday filing with the Hong Kong bourse.Motto Investment holds the company's aviation aircraft piston engine business, the main revenue driver for Continental Aerospace. After the sale, the firm said it will no longer have a sufficient level of operations and assets to warrant continued listing in Hong Kong, resulting in a proposal to delist and wind down the business.The firm will distribute proceeds from the sale to its shareholders via a special dividend estimated at between HK$0.419 and HK$0.436 per share in cash.Shares of the company jumped over 78% in late morning trade Monday.
