Weimob hits record low on plan to sell stake in unit as part of revamp

Weimob

17/01/2024 04:49

** Shares of China cloud-based commerce and marketing
solutions firm Weimob Inc  2013.HK  drop 14.7% to HK$1.91, their
lowest since debut in January 2019
    ** Stock on course for the biggest one-day pct decline since
October 2022, extending losses for the fourth consecutive
session; fifth-biggest pct loser in Hang Seng Composite Index
 .HSCI 
    ** Shanghai-based company says it is in preliminary talks
with certain potential buyers regarding sales of 50% or more of
its stake in Shanghai Weimob Culture Media, which accounted for
29.8% of the company's 2022 revenue, as part of its business
reorganization plan 
    ** The deal will enable the company to focus on the
long-term development of Weimob Corporate Services and cash
proceeds are intended for use in business development and for
repurchase of the shares to enhance shareholders' value 
    ** Hang Seng Tech Index  .HSTECH  drops 3.8%, Hang Seng
Composite Index  .HSCI  falls 2.9% and Hang Seng Index  .HSI 
down 2.8%
    ** Stock down 31.3% YTD

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