13th Jul 2015 13:49
LONDON (Alliance News) - Orange plantation operator Asian Citrus Holdings Ltd on Monday said its biggest shareholder has sold a large chunk of its stake in the company in an off-market deal in Hong Kong.
Asian Citrus said Market Ahead Investments Ltd has sold a 14.34% stake in the company to Changjiang Tyling Management Co Ltd for HKD200 million. Changjiang is a British Virgin Islands-based company half-owned by Asian Citrus Chief Executive Ng Ong Nee, with the other half owned by an unnamed third party. Changjiang also has the option to subscribe for another 1.6 million shares in Asian Citrus between May 2016 and May 2019.
The move means Market Ahead's stake in Asian Citrus has been cut to 4.68%. Following the deal, Chiangjiang will become the company's third-largest shareholders, according to Morningstar data.
Shares in Asian Citrus had been suspended in Hong Kong earlier in the day, pending the announcement of an off-market sale by a substantial shareholder, who the company did not name in the earlier announcement. It said its trading on AIM in London is unaffected by the Hong Kong suspension.
Its Hong Kong shares will be restored to trading on Tuesday morning.
Asian Citrus has had a tough couple of years, with its Hepu plantation in China was hit by two typhoons in 2014 and as its Xinfeng plantation, also in China, saw its production yield dragged lower after the company identified the presence of Huanglongbing disease, a bacterial disease which has so far hit around 18% of the trees at the site.
Shares in Asian Citrus were up 1.2% at 11.00 pence on Monday in London.
By Sam Unsted; [email protected]; @SamUAtAlliance
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