Geong rockets after confirming offer talks

Shares in Geong International rocketed after the company confirmed it was in talks with Hanafin Ltd regarding a possible offer.

The AIM-listed software company said “discussions are at a very preliminary stage” and there can be no certainty a transaction will be forthcoming.

Geong said it currently envisaged that any offer will be made at 5p per share in cash, which is the same price at which the company’s convertible unsecured loan stock is convertible.

Hanafin holds £1m of convertible unsecured loan stock in Geong, which is due to be redeemed on 30 September 2015, and which, if converted, would represent 34.6% of Geong’s issued share capital.

At 1351 BST, Geong shares were up 76% at 3.95p.