Elegantage Holdings Surges 11.5% on Chairman's Privatization Proposal at HK$4 Per Share

Elegantage Holdings (00064) shares resumed trading and surged 11.5% to HK$3.79 on July 20 after the company announced a privatization proposal from chairman and founder Hong Hanwen. The proposal values each share at HK$4, comprising a cancellation price of HK$2 per share to be paid in cash by the offeror, plus a special dividend of HK$2 per share to be paid by the company in cash.

The cancellation price represents a 41.2% discount to the last closing price of HK$3.4 before suspension, while the total price of HK$4 per share represents a 17.6% premium to that closing level. Subject to scheme approval, Elegantage will apply to delist from the Hong Kong Stock Exchange.