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Thursday, December 17, 2020 – 7:29 p.m.
A PROPOSED takeover of shares in Tianjin Zhong Xin Pharmaceutical Group by its majority shareholder may have been behind the company’s share price rise on Thursday.
Tianjin Zhong Xin revealed this on Thursday night after its share price rose more than 11 percent on Thursday morning, prompting a query from the Singapore Stock Exchange (SGX).
The accountant hit an intraday high of $ 1.10 before dipping slightly to $ 1.05, an increase of 11.7 percent or $ 0.11 before the midday break.
It continued its upward trajectory in the afternoon, climbing US $ 0.13 or 13.8 percent to US $ 1.07 at 2:41 p.m., with some 5.3 million shares changing hands. Tianjin Zhong Xin later called for a business stoppage.
In response to SGX on Thursday, Tianjin Zhong Xin said that its majority shareholder, Tianjin Pharmaceutical Holdings, is contemplating acquiring shares in the company. However, discussions continue and “there is no guarantee that any final agreement or transaction will materialize.”
As of September 28, Tianjin Pharmaceutical Holdings has a 42.8 percent stake in Tianjin Zhong Xin.
This comes as Tianjin Pharmaceutical Holdings owner, Tianjin Bohai State Assets Management, is in the process of transferring 67 percent of its stake in Tianjin Pharmaceutical Holdings through a public tender for sale, as part of a push in China to reform the state-owned company.
The reform is intended to introduce new investors, which may result in significant changes to Tianjin Pharmaceutical Holdings’ share structure and a change in its actual controller.
Otherwise, Tianjin Zhong Xin said, he is not aware of any previously unannounced information about the company, its subsidiaries or associated companies that could explain unusual business activity recently.
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