Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
UniVision Engineering (LON: UVEL) was the biggest mover in London on Wednesday after the company revealed its Chairman, Stephen Koo, agreed to sell a 52% stake in the business.
SinoCloud, an investment holding company, has agreed to pay Koo 4.1p per ordinary share or £8.2 million in total. Koo will retain a 20.5% stake in the company.
The transaction is subject to several pre-conditions, including satisfactory due diligence on UniVision by SinoCloud, an equity fundraising by SinoCloud and approval by SinoCloud's shareholders.
If the transaction is complete, SinoCloud has agreed to make a minimum funding facility of HK$10.0 million available to UniVision within three months of completion of the agreement.
The transaction is not expected to be finalised until sometime in April 2021.
UniVision did clarify that the UK Takeover Code does not apply and, should the transaction complete, SinoCloud will own 52.4% of the issued share capital, but they have indicated they have no current intention to make a general offer for the rest of the company.
The company’s shares soared following the news, ending the day up 145.45% at 2.70p per share.
Should you invest in UniVision Engineering shares? UniVision Engineering shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UniVision Engineering shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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