Zhiyuan Finance APP reported that Ronshine serv (02207) and the offeror Ronxin Yipin Limited jointly announced that on November 15, 2024, the offeror requests the board of directors to present a proposal to the planned shareholders regarding a proposal to privatize the company. If the proposal is approved and implemented, it will lead to the offeror privatizing the company according to Section 86 of the Companies Ordinance and canceling the listing status of the shares on the Stock Exchange.

The cancellation price of HK$0.60 represents a premium of approximately 15.38% over the closing price of HK$0.52 per share reported on the Stock Exchange on November 15, 2024.

The proposal provides planned shareholders with a good opportunity to liquidate their shares in a challenging and uncertain market environment.

Since the listing and the relevant part of the exercise of the over-allotment option, the company has not conducted any equity fundraising activities due to the relatively low liquidity of the above shares and the downward trend in share trading prices in past years. In this context, the company is unable to fully utilize its current listing platform as a source of funding for its long-term development. It is expected that continuing to be listed may not bring any meaningful benefits to the company in the near future.

Privatizing the company is expected to allow the offeror to make strategic decisions focused on long-term growth and benefits, without the pressure of market expectations, stock price volatility, and compliance requirements arising from the company being a publicly listed entity. The proposal involves the cancellation of the company's listing status, which is also expected to reduce administrative costs and management resources associated with maintaining the company's listing and complying with regulatory requirements. The proposal could also enhance the group's flexibility to achieve long-term business development, free from the impact of stock price fluctuations and additional costs and expenses that may arise from the company being a publicly listed entity.

The company has applied to the Stock Exchange for trading of shares to resume on November 25, 2024 (Monday) at 9:00 am.