HONG KONG—Shares in fashion and luxury goods maker Ports Design Ltd. are gaining about 27 percent Thursday on news that its shareholder Bluestone Global Holdings has raised its stake to 40.1 from 33.3 percent and is launching an offer for all of the outstanding shares in the company.
Bluestone, controlled by Ports chief executive Alfred Chan and former executive chairman Edward Tan, is offering shareholders 3 Hong Kong Dollars, or $0.39, per share. That’s a 27.1 percent premium to the shares’ previous closing price. Ports announced the offer Wednesday.
Ports shares were gaining 26.70 percent on the Hong Kong stock exchange as of late morning Thursday. They were trading at 2.99 Hong Kong dollars, nearly the offer price.
Ports Design said its declining sales are putting pressure on its margins and the offer provides an opportunity for shareholders to cash in on investment.
You May Also Like
The fashion group also said the central government’s policies to promote frugal living styles have put a dent on luxury goods demand.
Last month Ports tapped Natasa Cagalj as creative director for its Ports 1961 line. Cagalj succeeds Fiona Cibani.
Reuters contributed to this report.