AAG Energy Rallied 14.60% on 12 December before falling -1.27% on 13 December. Nevertheless, it is still a more than 10% rally from the friday closing price.
What brewed over the weekends?
This is in-line with the recent developments of its parent company 60339. 603393 approving an investment decision to invest up to 3 billion RMB into their Hong Kong Subsidiary (Not AAG Energy). The board also approved that out of this 3 billion, up to 2 billion can be from loan.
Considering that the net asset value of 603393 is only 12 billion RMB, this is a huge move from the company. The money moved into the subsidiary is also the same company that launched a 50.5% equity ownership offer in 2018 for AAG Energy. Therefore, this has triggered people to think that a take-over is close.
In 2018, when similar announcement is made, the initial amount as 2.2 billion and subsequently re-raised to 2.6 billion...