Economic Information Daily, 5th exclusive news: Cheerfine Industrial Electronics (01710) is currently down 22.8%, trading at HK$1.59, with approximately 7.39 million shares traded, involving a total value of HK$11.68 million.

    Cheerfine Industrial Electronics announced that last Tuesday (29th), the board was informed that Luxshare Precision (02475) (Shenzhen: 002475), as a potential buyer, and Cheerfine Industrial Electronics Holdings, as a potential seller, entered into a non-binding memorandum of understanding regarding a potential transaction for the possible purchase of 75% equity interest in the group. The company's shares have been suspended from trading on the Stock Exchange since last Wednesday (30th), and an application has been made to the Stock Exchange to resume trading from 9:00 a.m. today.

    The group stated that, in accordance with the Takeovers Code, the offer period commenced last Friday (2nd). If the potential transaction is finalized and completed, it will result in a change of control of the group and trigger a mandatory general offer under Rule 26.1 of the Takeovers Code. According to the memorandum of understanding, the potential seller has committed to a two-month exclusivity period and must use best efforts to assist the potential buyer in conducting due diligence on the group. (am)