EC Healthcare (02138) has announced that The Cosmetic Care Group Limited has exercised a put option. The option allows the seller to sell its entire stake in Rising Gold Phoenix Limited, representing approximately 10% of the target company's total issued share capital, to the buyer. The buyer is BMF Worldwide Limited, an indirect wholly-owned subsidiary of EC Healthcare.
The exercise price for the put option is HK$6 million, based on the cash EBITDA for the 2025 fiscal year as agreed between the buyer and the seller. This amount is expected to be funded from the group's internal resources.
Following the completion of the acquisition under the put option, Rising Gold Phoenix Limited will become a fully-owned subsidiary of EC Healthcare. The exercise of the put option is not expected to have any impact on the business and operations of the target company, which will continue to be consolidated as a subsidiary in the company's financial statements.
This transaction follows a previous agreement where BMF Worldwide Limited intended to acquire approximately 90% of the issued share capital of Rising Gold Phoenix Limited from The Cosmetic Care Group Limited for HK$52.5 million, subject to adjustments.
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