LONDON (Alliance News) - Chinese software and services company Geong International Ltd on Monday said it has entered talks with Hanafin Ltd over a possible takeover bid.
The talks are at a "very preliminary" point, Geong said, and there is no certainty a deal will take place.
At present, the discussions are focused on a bid which would be for around 5.0 pence per share in cash, the same price at which Geong's convertible unsecured loan stock is convertible at.
Hanafin currently has GBP1.0 million in convertible unsecured loan stock in Geong which is due to be redeemed at the end of September and, if redeemed, would give the company a 34.6% stake in Geong.
Geong shares were up 77% on the news, the best performer in the London market.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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