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China Kangda's public float falls below 25%; company applies for temporary waiver from HKEX
FOLLOWING the close of the mandatory unconditional cash offer by Zenith Hope to acquire the rest of China Kangda Food Company’s shares on Tuesday, the shares owned by the public fell to approximately 23.49 per cent.
As such, the minimum public float of 25 per cent is not satisfied, according to Hong Kong Stock Exchange rules.
The company said that an application has been made to the stock exchange for a temporary waiver and that Zenith Hope will take appropriate steps to ensure that sufficient public float exists in the shares as soon as possible following the close of the offer.
China Kangda, a dual-listed company in Hong Kong and Singapore, breeds and sells livestock, poultry and rabbits.
Earlier in July, China Tian Yuan Manganese – the biggest shareholder of China Kangda – agreed to sell a 69.46 per cent stake in the company to Zenith Hope.
This amounted to about 300.74 million shares to Zenith Hope for some HK$240.59 million (S$41.72 million), or HK$0.8 per share.
Under Hong Kong’s Takeovers Code, this triggered a mandatory unconditional cash offer for the rest of the company’s shares.