Coastal Greenland (HKG:1124) said it became the subject of a possible mandatory takeover offer after it was informed of Coastal International's intention to sell its holdings in the business, according to a Hong Kong bourse filing Friday.

Shares of the property developer gained over 30% in morning trade Monday.

Coastal International, which is controlled by Coastal Greenland executive director Jiang Ming, agreed to sell 153,126,197 shares representing nearly 37% of the business.

The sale is subject to due diligence by Tao Qian, which is buying the shares on behalf of S2800Trust.

Coastal Greenland cautioned that there was no guarantee the sale will go through.