HING LEE (HK) (00396) saw its share price plummet by more than 36%. At the time of writing, the stock was down 35.88% to HK$0.218, with a turnover of HK$5.3757 million. The sharp decline follows a company announcement issued on the evening of May 26. The announcement stated that the memorandum of understanding (MOU) related to a potential transaction, which could have led to a change in the group's control and triggered a mandatory general offer under the Takeovers Code, has lapsed. The offer period in connection with this matter ended yesterday. According to the announcement, the terms of the MOU stipulated that the potential transaction was conditional upon the parties negotiating and executing a legally binding sale and purchase agreement within two months from the date of the MOU, which was by May 25. As of May 25, no formal sale and purchase agreement had been entered into for the potential transaction, resulting in the MOU's expiration. Under the terms of the MOU, the earnest money paid by the potential buyer has been forfeited by the potential seller.
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