DALI FOODS GROUP COMPANY LIMITED By Yifan Wang
Shares of Dali Foods Group soared in Hong Kong after a privatization offer from the company's majority shareholder.
The stock rose as much as 32% Wednesday and was recently 29% higher at 3.51 Hong Kong dollars (US$0.45).
The rally came after Dali Foods' major shareholder proposed to take the company private for HK$3.75 a share, a 38% premium to the stock's Tuesday closing price.
"The proposed corporate action comes as a surprise to the market, in our view," Jefferies analysts said in a note. The offer price is 21% higher than the U.S. bank's 12-month target price for Dali Foods, the analysts said.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
06-27-23 2344ET
