CNT Receives HK$0.10 Mandatory Offer After Stake Lift to 34.38%; Possible Chain Offer for CPM at HK$0.0562

Bulletin Express
Apr 21

CNT Group Limited (CNT) faces a mandatory conditional cash offer after Prime Surplus Limited and SHK Hong Kong Industries Limited (together, the Offerors) boosted their combined stake to 34.38% on 10 April 2026 through the purchase of 88.72 million shares at HK$0.10 each.

Key terms of the CNT offer • Offer price: HK$0.10 per share, mirroring the acquisition price. • Premium/discount: 43.82% below the 10 April closing price of HK$0.178 and 84.08% below audited net asset value per share of HK$0.628 (31 December 2025). • Shares under offer: up to 1,249.22 million, valuing the free float at up to HK$124.92 million. • Condition: acceptances must raise the Offerors’ holding above 50% of CNT’s voting rights. • Funding: SHK will use internal resources; Prime Surplus will use Mr. Tsui Ho Chuen Philip’s personal funds. Yu Ming Investment Management confirms sufficiency of resources.

Shareholding shift • Before the transaction: 29.72% (565.74 million shares). • After the transaction: 34.38% (654.46 million shares).

Chain offer for CPM Group Limited (CPM) If the CNT offer becomes unconditional, the Offerors must launch mandatory unconditional offers for CPM: • Share offer price: HK$0.0562 per share, derived from Practice Note 19 (“Pacpo Formula”). • Option cancellation: HK$0.0001 per option (exercise price HK$0.335). • Potential outlay: HK$14.06 million assuming no options exercised, rising to HK$16.86 million if all independent options are exercised. • CPM public float: 25.00% (250 million shares) as at the announcement date.

Financial snapshots (audited, year ended 31 December 2025) • CNT: revenue HK$267.72 million; net loss HK$66.70 million; net assets HK$1.29 billion. • CPM: revenue HK$241.09 million; net loss HK$46.05 million; net assets HK$357.16 million.

Governance and timetable • Independent board committees have been formed for both CNT and CPM. • Alpha Financial Group will advise CNT’s committee; Ample Capital will advise CPM’s committee. • A composite offer document for CNT is expected within 21 days of 21 April 2026; CPM’s document will follow if the CNT offer turns unconditional. • Trading in CNT and CPM shares resumes on 22 April 2026 after a halt on 13 April.

The Offerors intend to maintain both companies’ stock exchange listings and continue their existing operations.

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