BUZZ-Dali Foods jumps most on record as founder offers to take co private at premium

Reuters2023-06-28

** Shares of Dali Foods Group Co Ltd jump as much as 32% to HK$3.59, their biggest intraday pct gain since debut in November 2015

** Stock, which halted trade on June 21, hit its highest since Feb 2 in resumed trade

** Dali Foods stock is biggest pct gainer in the Hang Seng Composite Index and second-biggest pct gainer on the Hong Kong bourse

** The Fujian-based food and beverage maker and distributor says its founder and controlling shareholder Xu Shihui offers HK$3.75 per share, or 37.9% premium to the previous close of HK$2.72 each, to take the company private

** Co says it has lost the advantage to maintain listing status with limited equity fund-raising ability due to the underperforming stock price, and it will apply for a withdrawal of the listing on completion of the deal

** The Hang Seng Commerce & Industry Index falls 0.6% and the Hang Seng Consumption Index eases 0.3%

** The Hang Seng Composite Index and the Hang Seng Index slip 0.3% each

** As of last close, stock down 22.3% this year

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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