Public Disclosure of Securities Dealings in China Shengmu Organic Milk Limited

Background

On 5 March 2026, a public disclosure was made regarding share dealings in China Shengmu Organic Milk Limited, as required by Rule 22 of the Hong Kong Code on Takeovers and Mergers. The disclosure is linked to a possible mandatory general offer, which is a critical event for shareholders and could potentially impact the share price.

Key Points from the Report

• Party Involved: CITIC Securities International Capital Management Limited (CSICML), a Class (5) associate connected with the Offeror.
• Date of Transaction: 4 March 2026
• Nature of Dealings: The transactions involved both the purchase and sale of shares, specifically through the closing, flattening, or unwinding of proprietary positions resulting from unsolicited client-driven dealings.
• Volume: 833,000 ordinary shares were both purchased and sold.
• Transaction Value: Total amount paid and received for the transactions was \$283,220.0000.
• Price Per Share: The highest and lowest prices for the shares traded were both \$0.3400, indicating all trades occurred at this fixed price.
• Timing: CSICML confirmed that these proprietary positions were closed no later than the close of the morning trading session following the originating client-driven dealing.
• Ownership Structure: CSICML is ultimately owned by CITIC Securities Company Limited.
• Purpose: Dealings were made for CSICML’s own account.

Important Considerations for Shareholders

• Potential Mandatory General Offer: The disclosure is connected to a possible mandatory general offer. If such an offer materializes, it could significantly affect the share price and strategic direction of China Shengmu Organic Milk Limited.
• Price-Sensitive Activity: The unwinding of proprietary positions involving a substantial number of shares (833,000) at a fixed price (\$0.3400) may signal market activity or interest related to the possible takeover, which is a key event for shareholders.
• Associate Involvement: Since CSICML is a Class (5) associate connected with the Offeror and is ultimately owned by CITIC Securities Company Limited, its actions may reflect broader intentions or strategies related to the Offeror, which shareholders should monitor closely.
• Market Impact: Although the trades were executed for CSICML’s own account and were closed promptly, the volume and context (possible takeover) make this disclosure noteworthy for investors tracking movements in the stock and potential corporate actions.

Conclusion

The disclosure of dealings in China Shengmu Organic Milk Limited shares by CITIC Securities International Capital Management Limited, particularly in connection with a possible mandatory general offer, is significant. Shareholders should be aware of the volume and nature of these trades, the fixed trading price, and the involvement of a connected associate of the Offeror. These factors may influence future share price movements and corporate actions. Investors are advised to monitor further disclosures and developments regarding the potential offer.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with professional advisors before making any investment decisions. The information provided is based on a public disclosure and may be subject to further updates or clarifications from official sources.

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