(Yicai Global) Dec. 27 -- Unisplendour Technology Holdings Ltd.' paid HKD135 million (USD17 million) for a more than 5-percent stake in Legend Holdings Corp. because the stock is undervalued, Zhao Weiguo, chairman of the buyer's parent, told Caijing Magazine yesterday.
The technology firm bought 4.51 million shares in the investment company from Dec. 19 through Dec. 22, becoming the target's largest shareholder after its four founders and eligible to take a seat on the board.
Legend Holdings' shares rose sharply on Dec. 18 and continued to rally on the news, with its stock rising a total of 50.95 percent to reach HKD31.7 at close yesterday. But Unisplendour's investment is fueling speculation into the reasons behind the move.
"We think Legend Holdings has an excellent board of directors and management team, we're not planning to win a seat on the board," Zhao said, suggesting he sees the investment as nothing more than a financial investment.
The firm invests in a range of sectors, including information technology, financial services, agriculture and food, real estate, chemicals and materials. The firm listed in Hong Kong in June 2015 but its share price had slumped to HKD23.3 as of Dec. 18 after an initial listing price of more than HKD40. Its best known unit is Lenovo Group Ltd.
Unisplendour also announced yesterday that it invested HKD49.4 million to buy nearly 4.16 million in Semiconductor Manufacturing International Corp. on Dec. 22, meaning it spent almost HKD200 million in capital investment last week.