LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
KVB Kunlun Financial Group Ltd (HKG:8077), the Hong Kong-focused retail Forex broker, issued an update on trading in its shares earlier today.
No major piece of news was announced, with the broker simply stating that trading in its shares will remain suspended until it prepares the official release of a deal with the purchaser. KVB Kunlun notes that more time is needed to prepare the announcement, which is expected to be out by the end of February 2015, with trading in KVB shares to be on halt until then.
As LeapRate reported last month, KVB Kunlun had reached an agreement with CITIC Securities Company Limited (SHA:600030) on a deal to see 60% of KVB’s issued shares sold to the Chinese investment bank. Both companies have been in talks on a deal since November 2014.
According to Hong Kong’s Takeover Code, if an acquirer intends to buy more than 30% of a company, the acquirer should also make a mandatory unconditional general offer for all the other company shares. This way, CITIC is also required to make a general offer for all KVB shares, at terms no worse than the company has agreed to pay KVB’s controlling shareholder Mr. Li Zhi Da for his 60% stake.
Trading in shares in KVB Kunlun was halted at 9am (HK time) on January 30, 2015. Before the halt the shares traded at HK$1.41, substantially exceeding CITIC’s bid of HK$0.65 per share.
Photo credit: Google Finance.
The official announcement by KVB on its shares trading suspension can be found here.