Hong Kong Technology Venture (HKG:1137) became the subject of a mandatory takeover after a firm controlled by its chief executive raised its stake in the firm's controlling shareholder to over 50%, according to a bourse filing Thursday.

Shares gained nearly 5% in afternoon trade Friday.

Mission Forward, a firm wholly owned by HKTV CEO Wong Wai Kay, acquired a 29.5% interest in Top Group from two sellers for HK$62.8 million.

The transaction raised Wong's effective interest in Top Group to nearly 52%, effectively giving the executive control over Top Group's 45.01% ownership in HKTV and triggering a mandatory takeover offer under Hong Kong regulation.

Mission Forward is now offering to acquire the remaining shares of HKTV it does not already control at HK$0.654 per share in cash.

HKTV said it had set up an independent committee to review the offer.