HK's Royale Furniture jumps to 7-yr high on share sales at premium

Royale Home Holdings

06/06/2019 03:17

** Shares of Royale Furniture Holdings Ltd  1198.HK  soar as
much as 22.9% to HK$1.18, highest since July 2012, after a unit
of China's State-owned Assets Supervision and Administration
Commission (SASAC) agrees to buy stakes at premium
    ** Stock tops the biggest percentage gainer in early trade
    ** SASAC's Science City (Guangzhou) Investment Group Co Ltd
has agreed to buy 218.4 mln shares, or 10.09%, of Royale
Furniture from major shareholder Great Diamond Developments Ltd,
for HK$257.7 mln ($32.9 mln)  urn:newsml:reuters.com:*:nFWN23C0JW
    ** Science City has also agreed to buy another 433.09 mln
new shares, or 16.67% of the enlarged share capital, from the
furniture maker for HK$441.8 mln
    ** Science City and others shareholders will then make a
general offer for all outstanding shares they do not already own
at HK$1.18 per share, representing 22.92% premium to last
closing price of HK$0.96 on May 24 
    ** As of last close, the stock had fallen 2.04% so far this
year
    ** Royale Furniture has outperformed the Hang Seng Commerce
& Industry Index sector  .HSNC  by 8.2 percentage points in the
past one month
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
eases 0.1%
    ** The Hong Kong Hang Seng sub-index tracking consumer goods
companies  .HSCICG  rises 0.5%, and the benchmark index  .HSI 
gains 0.2%


($1 = 7.8409 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)