Trio Industrial Electronics (01710) resumed trading this morning and tumbled, following a cumulative gain of more than 1.85 times in September. As of press time, the stock fell 19.9% to HK$1.65, with turnover of HK$12.916 million.

On the news front, Trio Industrial Electronics announced that on Tuesday last week (the 29th), the board was informed that Luxshare Precision Industry Co., Ltd., as a potential buyer, and Trio Industrial Electronics Holdings, as a potential seller, entered into a non-legally binding memorandum of understanding regarding a potential transaction involving the possible sale and purchase of a 75% equity interest in the group.

The group stated that, for the purposes of the Takeovers Code, the offer period began last Friday (October 2). If the potential transaction proceeds to completion, it will result in a change in control of the group and trigger a mandatory general offer under Rule 26.1 of the Takeovers Code. Under the memorandum of understanding, the potential seller has committed to an exclusivity period of two months and must use its best efforts to assist the potential buyer in conducting due diligence on the group.