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China Kangda's controlling shareholder to sell stake

THE biggest shareholder of China Kangda Food Company has agreed to sell a 69.46 per cent stake in the company to Zenith Hope.

Shareholder China Tian Yuan Manganese is selling 300.74 million shares to Zenith Hope for some HK$240.59 million (S$41.72 million), or HK$0.80 per share.

Under Hong Kong's Takeovers Code, this would trigger a mandatory unconditional cash offer for the rest of China Kangda's shares. 

The offer represents a premium of 23.08 per cent to the closing price of HK$0.65 per share on June 26, the last trading day before trading of its shares was suspended, and a premium of 19.76 per cent to the average closing price of approximately HK$0.668 per share for the 30 consecutive trading days immediately prior to and including the last trading day.

A dual-listed company in Hong Kong and Singapore, China Kangda breeds and sells livestock, poultry and rabbits.