Estun Automation Shares Plunge Over 16% Despite Company's Statement of Normal Operations

Stock News15:21

Shares of Estun Automation Co.,Ltd. (HKEX: 02715) have experienced a sharp decline of more than 16%, leading losses among robotics-related stocks. As of the time of writing, the stock was down 16.57% to HK$19.69, with a turnover of HK$405 million.

Background on the Announcement

The company issued an announcement late yesterday stating that its recent production, operations, and overall internal and external business environment have remained normal without any significant changes.

Details of the Planned Transaction

The company is currently planning an acquisition through its wholly-owned subsidiary, which would involve using cash to purchase equity in its partially-owned associate, Estun Cool. This transaction is considered a connected transaction. Upon completion, the company would indirectly hold 100% of Estun Cool's equity through its subsidiary, and Estun Cool would be consolidated into the company's financial statements.

Current Status and Risk Warning

This transaction is still in the planning stages. The specific transaction structure and terms require further discussion, negotiation, and are subject to necessary internal and external decision-making and approval procedures. The outcome remains uncertain. The company has advised investors to be mindful of the associated investment risks.

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