HK-listed Ming Yuan Cloud jumps on deal to buy full control of unit

Ming Yuan Cloud group

04/08/2021 05:50

** Shares of Chinese property software services provider
Ming Yuan Cloud Group Holdings Ltd  0909.HK  surge 14.5% to
HK$33.50, the highest since July 26
    ** Stock on course for best day since July 29; the biggest
pct gainer on both the Hang Seng Tech Index  .HSTECH  and the
Hang Seng Composite Index  .HSCI 
    ** Guangdong-based software firm says its subsidiary has
agreed to buy the remaining 29.9% stake it does not already own
in CRM cloud provider Shenzhen Mingyuan Yunke Electronic
Commerce for 598.1 mln yuan ($92.6 mln) cash  urn:newsml:reuters.com:*:nFWN2PA0QJ
    ** Says the deal will optimize structure of business
divisions and product layout, while eliminating communication
cost with minority shareholders
    ** Citi maintains "buy" on stock, saying the pricing is
attractive and the deal would better align the interest of Ming
Yuan Cloud with investors 
    ** The company will gradually consolidate stakes of other
cloud products down the road - Citi 
    ** The Hong Kong Hang Seng sub-index tracking information
technology firms  .HSCIIT  surges 3%, and the Hang Seng Tech
Index  .HSTECH  jumps 3.4%
    ** The Hang Seng Composite Index  .HSCI  and the benchmark
index  .HSI  both rise 1.6% 
    
($1 = 6.4597 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))