Shares of toymaker Bloks Group Ltd. (0325.HK) plunged on Thursday after the company disclosed the company’s founder and Chairman Zhu Weisong sold off some of his stake.
The company said Smart Blocks Ltd., one of its controlling shareholders wholly owned by Zhu, sold 3.85 million ordinary shares in a block trade on Oct. 22, equal to 1.56% of its total issued shares. Zhu sold the shares at a price of HK$65.28, which would have raised about HK$251 million ($32 million), based on a calculation by Bamboo Works.
Bloks said Zhu made the sale to meet his own funding needs, and that the matter has no relationship with Bloks Group’s own operations or financial condition. After the sale, Smart Blocks continued to hold about 2% of Bloks Group’s issued shares. Combined with his other holdings, Zhu still controls about 52% of the company’s shares.
Bloks Group’s stock fell 21.4% on Thursday after the announcement to close at HK$54.60, wiping out its gains for the year. Following the drop, the stock is down about 18% this year.
By Doug Young
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