Shares in casual clothing retailer Bossini International (0592) surged by 46.5 percent yesterday on reports that its controlling shareholder is negotiating to sell his stake.
The stock was suspended from trading on Monday afternoon.
When trading resumed it soared to an intraday high of 52 HK cents. Bossini closed up 39.4 percent at 49.5 HK cents.
The last time it closed higher was on August 1, 2007, when it ended the day at 50 HK cents.
Chairman Law Ka-sing, who holds 68.58 percent of the firm's issued share capital, is in discussions with a potential investor concerning a possible disposal of his stake, according to a statement to the local stock exchange.
No agreement has been reached, but a deal will trigger a mandatory takeover offer. Bossini closed 65 outlets in the mainland after net profit fell 81 percent to HK$19.8 million for the year ended March 2007.
Since then, earnings have risen. In March this year it posted a half-year net profit of HK$52 million. The retailer had HK$325 million net cash and HK$388 million in cash and bank balances at the end of February.
Bossini currently has 41 retail outlets in Hong Kong, 89 in Taiwan and 492 retail and franchised outlets in the mainland.
