Hong Kong-listed China Kangda Food Co. has revealed its majority investor has agreed to sell its shares in the business.

In a filing with the Hong Kong Stock Exchange, meat products supplier China Kangda Food Co. said manganese refiner China Tian Yuan Manganese Limited had “conditionally” agreed to sell its 69.46% stake in the company for HKD240.6m (US$30.9m).

The buyer is Zenith Hope, an investment holding company incorporated in the British Virgin Islands wholly owned by Eternal Myriad Limited, an investment holding company, which is ultimately wholly-owned Mr. Wu Jiming, a businessman with, the filing said, “20 years of experience in the areas of chemical industry, financial services and media industry in the PRC [People’s Republic of China]”.

The bid could lead to an offer for the rest of China Kangda Food Co.’s shares. If the transaction is completed, Zenith Hope will be required to make a mandatory cash offer for the rest of the stock. China Kangda Food Co. said the offer equated to a premium of 19.76% to the average closing price of its shares for the 30 trading days before it called for trading its stock to be halted. Its last trading day was 26 June.

An outline of Zenith Hope and Mr Wu’s plans for China Kangda Food Co. were made in the filing.

They intend to see China Kangda Food Co. “continue with its existing principal businesses”, which “includes production and trading of food products and breeding and sale of livestock, poultry and rabbits”.

In 2018, China Kangda Food Co. generated revenue of CNY1.4bn (US$203.5m), up from CNY1.3bn in 2017. It made a profit from operations of CNY32.8m, versus CNY21.7m a year earlier. The company posted a net profit of CNY5.7m, compared to a loss of CNY12.8m in 2017.