Far East Global Rises by Record on CSC Buyout: Hong Kong Mover
Far East Global Group Ltd. (830) almost doubled in Hong Kong trading after China State Construction International Holdings Ltd. (3311) offered to boost its stake to take control of the Hong Kong-based curtain-wall systems maker.
Far East Global, which resumed trading today after being suspended on Nov. 15, rose 92 percent, the largest gain since the stock debuted in Hong Kong on Mar. 30, 2010, to HK$1.13 by the close of trading on the city’s bourse.
China State Construction International, a Hong Kong-based unit of the state-owned China State Construction Engineering Corporation Ltd. (601668), plans to expand overseas as the nation’s property market cools on government curbs.
Far East Global “will provide an international platform which allows the company to seek investment opportunities throughout the international markets,” China State Construction International said in a statement posted to the Hong Kong stock exchange yesterday.
The construction company is offering to buy 1.04 billion new shares to boost its stake in Far East Global to 51 percent, or 53 percent if all outstanding share options are not exercised, according to the statement. It will pay HK$1.18 in cash for each existing share, it said.
China State Construction International has no intention of privatizing Far East Global and its shares will remain listed on the Hong Kong stock exchange after the transaction, it said.
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