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STOCKS NEWS SINGAPORE-China Minzhong up after funds, investors buy 10.3 pct stake

Source : REUTERS
Last Updated: Sat, Dec 08, 2012 18:40 hrs

Shares of China Minzhong Food Corp Ltd jumped after it said institutional funds and high net worth investors had bought a 10.3 percent stake in the food processing firm from Olympus Capital Holdings Asia at a placement price of S$0.80 per share.

China Minzhong shares rose as much as 6.7 percent to S$0.80 after a trading halt was lifted on Friday. Nearly 14 million shares were traded, 1.8 times the average full-day volume over the past 30 days.

But even after the rise, the stock was still down nearly 2 percent so far this year, lagging the 25 percent gain in the FT ST Small Cap Index.

China Minzhong shares had plunged almost 12 percent on Thursday after a block trade fuelled speculation that one of its largest shareholders had sold its stake.

Olympus, a private equity fund, had invested in China Minzhong since 2006, the company said in a statement on Friday.

"However, given the closed end nature of private equity funds, it is a natural progression for private equity firms to liquidate their investments post IPO and return capital to their investors," China Minzhong said.

1224 (0424 GMT)

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