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Hot stock: GP Batteries surge on news of planned cash offer from parent
NEWS of the planned cash offer from its parent sent GP Batteries' shares surging on Friday afternoon after trading was resumed.
At 3.05pm, GP Batteries shares leapt 59.4 per cent to S$1.275; its parent GP Industries also climbed 4.9 per cent to S$0.645.
Trading on both counters was halted on Thursday morning pending the announcement and lifted on Friday at 2.45pm.
GP Industries Limited said on Friday morning that it plans to launch a voluntary conditional cash offer for GP Batteries International at S$1.30 per share in a bid to privatise and delist the 64.88 per cent subsidiary.
The offer will be made if the pre-condition of obtaining approval from shareholders of Hong Kong-listed Gold Peak Industries (Holdings) (GPH) - which holds 85.47 per cent of the offeror GP Industries - is fulfilled at a general meeting within six months.
The offer price represents a premium of 61.1 per cent and 61.5 per cent above the six-month and 12-month volume-weighted average price respectively, said OCBC, the financial adviser to the offeror.