Shares of ENM HOLDINGS (HKEX: 00128) have surged more than 40%. At the time of writing, the stock is up 42.5% to HK$0.57, with a turnover of HK$3.5794 million.

Catalyst for the Move

The company has announced a proposal to sell the Hin Tat land by tender and to voluntarily withdraw its listing status. It is proposed that a dividend be distributed following the completion of the suggested land sale and prior to the delisting. The amount for this distribution is intended to comprise the net proceeds from the proposed sale, certain cash reserves, and the net proceeds from the potential sale and/or redemption of financial assets.

The company specified that the land to be sold via tender is located at 10 Hin Tat Road, Lo Wai, Tsuen Wan, New Territories. The current plan is to initiate the tender process in the first quarter of next year, aligning with the anticipated completion of the gazettal process for a road. The indicative target is to complete the proposed sale by the third quarter of next year. The book value of the Hin Tat land was approximately HK$320 million as of the end of last year.

Following the completion of the proposed sale, the company intends to voluntarily withdraw the listing of its shares from the Stock Exchange in accordance with the listing rules. To facilitate the proposed dividend distribution, the company plans to establish sufficient distributable reserves. This will involve a proposed capital reduction and an application to the High Court of Hong Kong to release a commitment maintaining a special reserve of approximately HK$809 million.