Shares of SMC Electric (02381) climbed more than 6% during the late trading session. At the time of writing, the stock was up 6.41% at HK$0.415, with trading turnover reaching HK$1.83 million.

On the news front, SMC Electric recently disclosed that Star Mega Holdings has completed the acquisition of 1.4 billion shares in the company, representing 70% of the total issued share capital, for a total consideration of HK$154 million. Following the completion of the share transfer, the controlling shareholder of SMC Electric has formally changed to Star Mega Holdings.

The acquisition has triggered a mandatory general offer obligation. Star Mega Holdings will launch a comprehensive offer at the same price per share. It is understood that Star Mega Holdings is indirectly wholly owned by Tinno Mobile, a leading domestic smart terminal company, with Tinno Mobile held 97.0149% by Tinno Technology Group.

Star Mega Holdings has clearly stated its intention to continue SMC Electric's existing business operations, has no plans to privatize the company, and intends to maintain the listing status of the company's shares on the Stock Exchange of Hong Kong. The transaction is more inclined toward achieving strategic entry of industrial capital through a change of control.