AV Concept 0595

[winston]

AV Concept shares surge after Richard Li and Value Partners buy stake

Shares of AV Concept (0595) closed nearly 40 percent higher yesterday after a consortium led by Richard Li Tzar-kai and Value Partners (0806) bought a 10 percent stake in the firm.

AV Concept rocketed 74 percent when the market opened after trading in its shares was suspended for two days.

The gains subsided as trading progressed but it still closed 36.47 percent higher at HK$1.16. The electronics component distributor said on Tuesday night that it had placed top-up shares with the consortium headed by Li's private Pacific Century Diversified and Value Partners.

Others members include Li's right-hand man Morris Ho, the chief executive of the Hong Kong Economic Journal, and CAM Global Fund. New shares equaling 10 percent of the enlarged share capital were issued to the consortium at 68.1 HK cents each for a total of HK$3.12 million, AV Concept said in a statement to the Hong Kong stock exchange. It said the net proceeds of HK$3.07 million will be used to fund its LED business and as operating capital.

The placing price is a 19.88 percent discount to AV Concept's closing price of 85 HK cents on October 30, the day before the trading suspension.

A Value Partners spokeswoman said the investment is a long-term one. Ho described the move as a personal investment, while Li had no comment.

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