Carry Wealth (HKG:0643) said it became the subject of a mandatory general offer after its controlling shareholder defaulted on a loan, according to a Hong Kong bourse filing Friday.

Shares of the apparel and securities business fell over 27% in morning trade Monday.

The borrower, Ma Xiaoqiu, had pledged the entire share capital of Mars Worldwide--which owns 411.3 million Carry Wealth shares, or 45.71% of the company--to Tsang Chun Ho Anthony as security for a HK$40 million loan.

After the non-payment of dues, Tsang enforced the share mortgage and arranged for the sale of Mars Worldwide to Zephyrus Capital for HK$54 million.

Following the sale, Zephyrus and Tsang have offered to acquire the rest of the business for HK$0.1331 per share in cash, or around HK$65 million in aggregate.

Carry Wealth said it formed an independent board committee to advise shareholders on the proposal.