Shares of CONTEL-NEW (HKEX: 01912) surged more than 30%. At the time of writing, the stock was up 31.14% to HK$2.19, with a turnover of HK$19.39 million.

The company recently announced that on May 5, it issued approximately 271 million shares to the subscriber, Zhuangyan Investment International Limited, at HK$0.365 per share. Subsequently, on June 8, a placing agreement was entered into for the proposed placement of a further 58.205 million shares through a placing agent, also at a placing price of HK$0.365 per share.

The total gross proceeds from these transactions amount to approximately HK$120.2 million, with net proceeds of about HK$119.7 million.

Following the completion of the subscription and placing, the offeror and its concert parties will hold approximately 58.81% of the company's enlarged share capital. This triggers a mandatory unconditional cash offer for all issued shares.

The offer price is HK$0.365 per share, representing a discount of approximately 34.82% to the last closing price of HK$0.56 before the trading halt.

The offeror is an investment holding company. Its sole legal and beneficial owner, as well as its sole director, is Zhuang Hezhong. Zhuang Hezhong is a businessman with over a decade of experience in the consumer electronics industry.

He currently owns and operates companies primarily engaged in the import, export, wholesale, and retail trade of consumer electronics integrated circuit components and semiconductor modules, with operations mainly in China and other Asia-Pacific countries. Over the past ten years, Zhuang has accumulated extensive expertise in supply chain management, cross-border logistics, quality control, and customer relationship management.