China-focused Prosperity Minerals Holdings Ltd said its Chief Executive David Wong had signed a memorandum of understanding to transfer his 53 per cent stake in the company to Prosperity International Holdings Ltd 8139.HK in a stock deal.
The transfer will be at a price yet to be agreed and the move is to consolidate Wong’s interests in the cement industry, the company said in a statement.
Prosperity Minerals operates a cement manufacturing business and an iron ore trading business in China.
Prosperity International, a Hong Kong-listed cement trader with interests in a white granite mine and port facilities in China, is required to complete its due diligence review on Prosperity Minerals within four months of signing the MoU, it said.
Wong, who is also the chairman of both the companies, is a controlling shareholder of Prosperity International with a 39 percent stake. He founded Prosperity Group in 1980.