Quali-Smart (HKG:1348) said it became the subject of a mandatory takeover offer after a change in ownership of the business, according to a Hong Kong bourse filing Thursday.

Shares of the toy manufacturer fell over 29% in morning trade Friday.

A group of shareholders sold 887.4 million shares representing 60.20% of the firm to Yael Capital Management. The shares were sold for HK$95.8 million, or HK$0.108 apiece.

Yael Capital has now offered to acquire the rest of the business at the same price.

Quali-Smart said it had set up an independent board committee to review and advise shareholders on the offer.