HK's Huanxi Media hits 5-week high on share sale to Maoyan

Huanxi Media

13/03/2019 03:08

** Shares of Huanxi Media Group Ltd  1003.HK  jump as much
as 15.4 pct to HK$1.80, their highest since Feb 8
    ** Stock rises after company plans sale of HK$390 mln ($49.7
mln) shares, raising fund to develop online video platform
    ** The media and entertainment group says it will sell 236.6
mln new shares, representing 7.5 pct of its enlarged share
capital, at HK$1.6507 apiece to Maoyan Entertainment  1896.HK 
in a bid to achieve business synergy in various aspects
 urn:newsml:reuters.com:*:nFWN20Z0L5
    ** Co says proceeds will also be used for investment,
production, and purchase of film and TV contents  
    ** Co and Maoyan will co-invest in films and TV/internet
drama series projects
    ** Stock of Maoyan falls as much as 3 pct in mid-morning
trade
    ** As of last close, Huanxi Media stock down 3.7 pct so far
this year
    ** Huanxi Media has underperformed the Hang Seng Commerce &
Industry Index sector  .HSNC  by 4.4 percentage points in the
past one month
    ** The Hong Kong Hang Seng sub-index tracking information
technology firms  .HSCIIT  falls 1.2 pct, while the benchmark
index  .HSI  eases 0.4 pct


($1 = 7.8498 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)