-- Futong Technology Development (HKG:0465) said Chairman Chen Jian is in talks to sell a controlling stake in the company that could trigger a mandatory general offer, according to a Wednesday Hong Kong bourse filing.
Chen signed a memorandum of understanding on April 2 with an independent third-party potential buyer for the sale of 187.4 million shares, representing about 60.21% of the company's issued share capital.
No formal sale and purchase agreement has been signed, and discussions are ongoing.
Shares of the enterprise IT infrastructure product provider were up 9% in Wednesday afternoon trade.