Hong Kong based retail forex broker KVB Kunlun requested and received today a halt in trading of its shares on the HKEx (HKG:8077). Trading in KVB was halted at 1pm local time. Up to the time of the halt, KVB shares had dropped 8% on Wednesday, down to HK$1.06.
As we reported, KVB shares skyrocketed last week, increasing nearly 300% at one point, when the company disclosed alongside its Q3 results that its controlling shareholder had been approached by an independent potential investor in relation to a possible acquisition of all or part of the shares owned by the controlling shareholder. However the shares had settled somewhat later last week when no deal materialized.
So is this latest halt a signal that a deal has been reached? Or that takeover talks have broken off? Stay tuned to LeapRate…
KVB’s official word on the halt:
At the request of KVB Kunlun Financial Group Limited (“Company”), trading in the shares of the Company has been halted with effect from 1 p.m. on Wednesday, 19 November 2014 pending the release of an announcement relating to inside information and on the updating of certain information pursuant to Rule 3.7 of the Takeovers Code.
KVB’s official release on the new trading halt can be seen here.