WECON HOLDINGS (01793) resumed trading this morning with shares jumping more than 33% at one point, currently up 28.05% at HK$1.05, with a turnover of HK$5.49 million.

On the news front, the company announced that Chairman, CEO, Executive Director, and Controlling Shareholder Tsang Ka Yip has informed the board that his wholly-owned company, Triple Arch Limited, entered into a non-legally binding memorandum of understanding (MOU) with Talent Pool Group Limited on August 19 regarding the potential sale of 600 million shares, representing 75% of the company's equity.

Should the potential transaction materialize, it would result in a change of control of the group and trigger a mandatory general offer obligation under Rule 26.1 of the Takeovers Code. The potential buyer, TPGL, is a company incorporated in the British Virgin Islands primarily engaged in investment holding business.

According to the announcement, the potential transaction is subject to the parties negotiating and signing a legally binding sale and purchase agreement within two months from the date of the MOU. During the exclusivity period, the potential buyer is entitled to conduct due diligence on the group. Under the terms of the MOU, the potential buyer is required to pay a refundable deposit of HK$5 million within two business days from the date of the MOU.