LVJI TECH (01745) has announced that its controlling shareholder intends to increase his stake in the company through a share transfer arrangement.
The company's board was informed by Mr. Zang Weizhong, the executive director, board chairman, and controlling shareholder, that Lu Jia Technology Holdings Limited, a company wholly owned directly by Mr. Zang, plans to acquire no more than 1 million shares of the company from one or more existing shareholders by way of transfer, effective from the date of this announcement.
As of the announcement date, Mr. Zang holds interests in a total of 16,757,400 shares, representing approximately 33.11% of the total issued shares. According to Mr. Zang's intention, following the proposed acquisition, the aggregate shareholding of the controlling shareholder and parties acting in concert with them will not trigger a mandatory general offer obligation under Rule 26 of the Hong Kong Code on Takeovers and Mergers, which applies to controlling shareholders of Hong Kong-listed companies whose shareholding ranges between 30% and 50% over any twelve-month period. Specifically, the total shareholding will not increase by more than 2% above the lowest shareholding level recorded in the twelve months preceding the proposed acquisition.
The board believes that the proposed acquisition demonstrates Mr. Zang's confidence in the company's prospects and growth potential. Based on information available to the company and to the best of the directors' knowledge, the company will maintain sufficient public float of its issued shares following the proposed acquisition.
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