After a week which saw its shares fall 16% (culminating a 29% drop since early June), things didn’t get better today as Hong Kong retail forex broker KVB Kunlun Financial Group Ltd (HKG:8077) saw its shares in freefall on Monday in HKEx trading.
KVB shares dropped from Friday’s close of HK$1.25 by more than 27% during the trading day, sitting at HK$0.91 as of the time of writing.
Investors have been dumping KVB shares since the expiration of CITIC Securities Company Limited (SHA:600030) offer to buy out the minority shareholders of KVB for HK$0.65 per share – the same price which CITIC paid to acquire majority (59%) control of KVB from KVB’s former controlling shareholder Li Zhi Da.
Investors in KVB had been holding out for a higher offer from CITIC, betting that the Chinese financial giant was going to raise its offer in order to take KVB fully private. CITIC called their bluff, never raising its offer and letting the offer expire on June 26.
KVB share price, past five trading days. Source: Google Finance.