Shares in Winsor Industrial jumped more than 30 per cent yesterday after eight existing and former directors proposed a HK$484.4m privatisation bid for the company, the South China Morning Post reported today.

The textile and garment manufacturer surged 57 HK cents or 31.14 per cent to close at HK$2.40, a three-year high.
The gain was the third largest among stocks traded yesterday.
The stock last traded at HK$1.83 before its suspension on Tuesday last week.

The sharp price rise came on the back of heavy trading yesterday as 3.06 million shares worth HK$7.34m changed hands. An average of less than 100,000 shares were traded daily last year.

Under the proposal, Super-Rich Finance, owned by seven Winsor directors and a former director, would pay HK$2.50 per share in cash and a 10 HK cent dividend to buy 186.31 million outstanding shares, or 71.74 per cent of the company.

Chairman and managing director Chou Wen-hsien is among the eight.
The deal would cost them about HK$484.4m, based on Winsor's valuation of HK$675.2m. The offer represents a premium of about 42 per cent over the last closing price of Winsor shares.

Those behind the proposal believed that, given the state of Hong Kong's economic development, the textiles and clothing industry was a sunset industry. The industry had been squeezed of resources such as land, and labour.

Although the Winsor group has relocated part of its operations to China, earnings from its textiles and clothing operations have declined continuously over the past three years.

The group maintained a portfolio of securities investment in Hong Kong and overseas at a market value of HK$372.8m on March 31.

Apart from listed securities, Winsor group's investments in associated companies, jointly controlled entities and unlisted securities, was about HK$344.9m.

About 71 per cent of that investment was in mainland manufacture of textiles, clothing, herbal health products, food and cement. It also has an indirect interest in a Shanghai commercial development.