LONDON (Alliance News) - Chinese software and services company Geong International Ltd saw its shares fall after Hanafin Investments said it will not be making a bid for the company and will not be converting its stock options.
Hanafin made its statement after Geong said last week it will likely have to make a "significant provision" against the carrying value of accrued income and trade debtors, following an audit the company has carried out on its books.
Hanafin said that this meant it would not be making bid for the company and said it does not intend to convert its GBP1.0 million in convertible unsecured loan stock in Geong which is due to be redeemed at the end of September.
It said it is holding talks with Geong regarding the terms of its convertible stock options and an extension to the redemption date beyond the end of this month.
Geong shares were down 5.0% on the news to 3.325 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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