Cookware maker Supor's stock limit-up in Shenzhen after trading uspension

Cookware maker Supor's shares were limit up on the Shenzhen Stock Exchange on Friday following the announcement of a dividend offering plan by the France-based Groupe SEB, which recently acquired a 52.74-percent stake in the Chinese company.

The French company said it would offer a special stock dividend of 10 shares for each 10 held by public shareholders.

The announcement drove Supor's share price up by 9.87 percent to 49.06 yuan (6.6 U.S. dollars) on Friday, hitting the maximum daily limit based on the price of 47 yuan per share paid by Groupe SEB.

The acquisition cost Groupe SEB 217 million euros.

The share price surge also came on the first trading day after a five-day suspension, imposed after SEB's acquisition reduced the company's free float below required levels.

The stake purchase by SEB had cut Supor's shares in circulation to 11 percent, which is below the exchange's required 25 percent ratio.

The bourse requires a 10 percent minimum ratio of public shares for listed companies whose total share capital exceeds 400 million shares. Supor now has a total share capital of 216 million shares, which means that a much higher public share ratio of 25 percent is required by the exchange.

The exchange allowed trading in Supor to continue till Jan. 17,2008, by which time the company must publish reports for 2007 verifying that the free float requirement was met. Otherwise, Supor will be suspended again.

Following the acquisition, the founding Su family holds a 36-percent share. "Supor will not be delisted," said Su Xianze, who will remain the president of the Chinese firm. He said that that there would be a period of suspension for the stock exchange so that the company can proceed with the special dividend.

Sources with the company said that trading could resume before Mar. 20, 2008.

Founded in 1994, Supor is a leading cookware manufacturer in China. It began making small electric home appliances in 2001. Groupe SEB is one of the world's largest cookware makers and was established more than 150 years ago.