Shares in Chun Wo Development Ltd, have resumed trading. Trading in shares of the company were earlier suspended on July the 7th 2014 at the request of the company pending the release of an announcement that was related to possible inside information on the company.
The following announcement was made by Chun Wo Development Holdings Ltd.
The board of directors of the company was informed by the controlling shareholders of the company, GT Winners Ltd, which holds 610,042,884 shares and represents approximately 56.32% of the existing issued share capital of the company as at the date of this announcement that a memorandum of understanding was entered into between GT Winners as a possible vendor and an independent third party as possible purchaser on the 4th of July 2014 in relation to the possible sale and purchaser of all or part of the 610,042,884 Shares held by GT Winners, the Possible Transaction. Pursuant to the MOU, GT Winners have agreed not to discuss or negotiate any arrangement with any other party in respect of the subject matter of the possible transaction for a period of time that there will not be any material changes on the contractual from the date of the MOU to the to 30th of September 2014 unless (unless GT Winners) and the possible purchaser that there will not be any material changes on the contractual relationship between the group and its senior management or the business and customers’ contracts of the Group after completion of the Possible Transaction.
The Board has been informed by GT Winners that no legally binding agreements had been entered into in respect of the Possible Transaction may or may not proceed. If the possible transaction materializes, it may lead to a change in control of the Company and a mandatory general offer under the Takeovers Code for all the shares and relevant securities of the Company (other than those already owned or agreed by to be acquired by the Possible Purchaser and parties acting in concert with it.
In compliance with Rule 3,7 of the Takeovers Code, monthly announcement(s) setting out the progress of the aforesaid discussions will be made until and announcement(s) setting out the progress of the aforesaid discussion will be made until an announcement of a firm intention to make an offer under Rule 3.5 of the Takeover Code or a decision not to proceed when an offer is made. Further announcement(s) will be made by the company as and when appropriate or required in accordance with the Listing Rules and the Takeovers Code (as the case may be).