Thelloy Development (HKG:1546) became subject to a mandatory unconditional cash offer following a change in control, according to a joint Hong Kong bourse announcement on Wednesday.

Shares of the construction company were down nearly 38% in Thursday morning trade.

The company said it was informed of the sale of 500.8 million shares, representing 62.6% of its issued share capital, at HK$0.19 per share, or about HK$95.2 million.

The shares were sold by Cheers Mate, the controlling shareholder vehicle of chairman Lam Kin Wing Eddie, to World Nexus.

The offer price of HK$0.19 per share represents a discount of about 50.7% to the last closing price and a discount of about 44.3% to the five-day average closing price, the filing said.

Upon completion of the transaction, World Nexus will be required to make a mandatory unconditional cash offer for all remaining shares in Thelloy at the same price of HK$0.19 per share.

Thelloy said it has formed an independent board committee to advise independent shareholders, and an independent financial adviser will be appointed to assess whether the offer is fair and reasonable.