(Alliance News) - Zibao Metals Recycling Holdings PLC on Thursday confirmed talks to sell its trading unit Masterpiece Enterprises Ltd.
Shares in the Hong Kong-based metal recycling company are up nearly three-fold on Thursday at 0.56 pence each in London. On Wednesday, the stock closed at 0.20p.
"The company can confirm that it is in talks to dispose of its trading subsidiary, Masterpiece Enterprises Ltd for a consideration at or around book value in the group's accounts," Zibao said in response to the sharp jump in its stock price.
It warned, however, that there can be no certainty that disposal of the unit will proceed and no definitive agreement has yet been reached.
Zibao also hopes to raise new cash via the issue of shares should the unit's disposal be approved by Zibao shareholders.
The company additionally said that it continues to be loss-making and will release its results for the six months to September 30 later in December.
By Tapan Panchal; tapanpanchal@alliancenews.com
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