June Glory International, a non-wholly owned subsidiary of China Minmetals, has proposed to privatize Minmetals Land (HKG:0230) by way of a scheme of arrangement at HK$1.00 per share in cash, according to a joint Thursday Hong Kong bourse filing.

Shares of the property developer rose nearly 90% in Friday morning trade.

June Glory International will fund the HK$1.28 billion offer entirely through internal resources, the filing said.

The offer price represents a 104% premium over Minmetals Land's last closing price, and a 186% premium over the undisturbed closing price.

June Glory noted that Minmetals Land's shares have long suffered from thin trading, with an average daily turnover of about 440,000 shares, or roughly 0.03% of the free float.

The privatization, it said, provides shareholders a clear exit opportunity at a premium, without facing an illiquidity discount.

Upon completion, Minmetals Land's shares will be withdrawn from the Hong Kong Stock Exchange, while its listed debt securities will remain traded.