GLOBAL NEW MAT (06616) surged over 5% again, marking a cumulative gain of more than 100% since October 30. At the time of writing, the stock was up 4.16% to HK$9.27, with a turnover of HK$76.89 million.
The company recently announced a connected transaction involving the acquisition of a 2.57% stake in Seven Colors Pearl Pigment for RMB 69.02 million, to be settled by issuing 957,160 consideration shares at HK$8.01 per share. Upon completion, GLOBAL NEW MAT will hold a 99.76% stake in Seven Colors Pearl Pigment, which primarily engages in the production and sales of pearl pigments and mica-based functional fillers.
According to the announcement, Seven Colors Pearl Pigment has demonstrated sustained business growth and has become a core operational unit of the group. The board intends to increase its stake in Seven Colors Pearl Pigment to enhance investment returns by consolidating a higher proportion of profits or dividends into the group's financial performance.
