China Kangda's shares soar as parent engages in talks to sell controlling stake

Singapore

CHINA Kangda Food Co announced on Tuesday that its biggest shareholder, China Tian Yuan Manganese, has entered into a memorandum of understanding (MOU) to negotiate a sale of shares to an unrelated third party.

If the sale goes through, the unnamed purchaser and parties acting in concert are expected to hold more than 50 per cent of the company's issued share capital, which would trigger a mandatory unconditional general offer for the rest of the company's shares under Hong Kong's takeover rules.