Twinktek Investment (HKG:6182) said it became the subject of a mandatory unconditional cash offer after Mars Nest acquired a controlling 75% stake in the company, according to a joint Hong Kong bourse filing on Tuesday.

Shares of the building materials seller were down over 9% in Wednesday morning trade.

Mars Nest purchased 510 million shares, or 63.8% of Twinktek's issued capital, from the selling shareholders for a total of HK$124.3 million, or about HK$0.24375 per share.

Separately, Lee acquired 90.0 million shares, representing 11.3%, from Helios for HK$21.9 million at the same price.

Following the acquisition, Mars Nest and parties acting in concert triggered a mandatory cash offer for the remaining 200 million shares at HK$0.24375 per share, valuing the outstanding stake at about HK$48.8 million.

The offer price represents a 74.3% discount to Twinktek's closing price on the last trading day before the announcement, and a 69.4% discount to the average closing price over the previous five trading days.

Get Nice and Lego Corporate Finance are acting as joint financial advisers to Mars Nest and confirmed that sufficient financial resources are available to satisfy the full acceptance of the offer.