Greenheart Group (94), a unit of Sino- Forest Corp., received a HK$165 million ($21 million) offer from Emerald Plantation Group Ltd. for the shares it doesn’t own in the lumber supplier.
Emerald Plantation offered 58 Hong Kong cents a share to buy Greenheart stock it doesn’t already own, it said in a filing to the Hong Kong stock exchange.
Bourse rules require companies that gain control of more than 30 percent of another company’s shares to bid for the remaining stake. Emerald Plantation owns about 64 percent of Greenheart at present.
Greenheart shares rose 4.7 percent to 67 Hong Kong cents at the close. The buyout offer values the entire company at HK$452 million.
Sino-Forest was accused in June 2011 by short seller Carson Block of exaggerating its revenue.
To contact the reporter on this story: Benjamin Haas in Hong Kong at firstname.lastname@example.org
To contact the editor responsible for this story: Jason Rogers at email@example.com