Ocean Grand Chemicals (2882) has announced today that they will bid for 3D-Gold (870), which is under provisional liquidation (You can see related posts about 3D-Gold on this site too: http://www.hkfinancialnews.com/?cat=182).
Ocean Grand Chemicals (2882) is majority owned by Dr. Kennedy Wong Ying Ho, a lawyer on the outside, but indeed he is known to have very good connection with the Chinese government. He himself is the grandson of the founder of Camelpaint in Hong Kong and his sister was an active politician. Ocean Grand Chemicals had been suspended for more than 2 years due to accounting irregularities before trading resumed in October 2008. In October 2008, it was announced that Dr. Wong will become an investor in Ocean Grand Chemicals (through Perfect Ace Investments). The way the transaction is structured suggests that Dr. Wong wants to use Ocean Grand Chemicals as a shell for future acquisitions. Subject to shareholders’ approval, the name of Ocean Grand Chemicals will be changed to Hong Kong Resources. This sounds like he wanted to capture a high premium for natural resources companies before the commodities bubble went bust. Not sure how 3D-Gold is related to natural resources. But it is related to Ocean Grand Chemicals’ old business – gold electroplating. Maybe Dr. Wong is going to continue Ocean Grand Chemicals’ electroplating business and try to vertically integrate Ocean Grand Chemicals’ original business with the gold jewelry retail business of 3D-Gold.
Maybe Ocean Grand Chemicals will not be changed to Hong Kong Resources after all.
