Dec. 20 (Bloomberg) -- Hang Ten Group Holdings Ltd. surged by a record in Hong Kong trading after a HK$2.65 billion ($340 million) buyout offer from Li & Fung Retailing Ltd. that values the shares at 59 percent more than their previous close.
The clothier jumped as much as 56 percent, the biggest gain since listing in 2003, before trading 55 percent higher at HK$2.64 as of 9:54 a.m. local time.
Li & Fung Retailing, whose parent also controls Li & Fung Ltd., offered to buy all outstanding shares, Hong Kong-based Hang Ten said in a filing yesterday. Apparel companies were the targets in 105 acquisitions, valued at a total of $2.6 billion, in China and Hong Kong during the past three years, according to data compiled by Bloomberg.
Li & Fung Retailing offered HK$2.70 cash for each Hang Ten share, 59 percent higher than the last-traded price of HK$1.70 on Dec. 15, according to the filing.
YGM Trading Ltd. pledged to accept the offer for the 214.2 million Hang Ten shares it owns and a further 8.2 million it has on deposit with a law firm, according to a separate Hong Kong stock exchange statement yesterday. The family of Dennis Kung agreed to sell its 464.2 million shares, YGM said. YGM and Kung’s family together control a 69.9 percent stake in Hang Ten, according to the filing.
--With assistance from Michael Wei in Shanghai and Anjali Cordeiro in Hong Kong. Editors: Dave McCombs, Lena Lee
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