NEWLINK TECH (09600) announced that on May 22, 2026 (after market close), the company entered into a non-binding memorandum of intent (MOI) with HK Ant Global Investment Co., Limited (the "Target Company"), its shareholder Silicon Base Technology Limited ("Silicon Base"), Ant Global Investment Co., Ltd ("Ant Global", together with Silicon Base, the "Target Company Shareholders"), and the beneficial owners of the Target Company, Ms. Qu Zhaojuan and Ms. Yuan Xiaona (together, the "Target Company Beneficial Owners").
Pursuant to the MOI, the company intends to acquire all issued shares of the Target Company (the "Acquisition") through a combination of cash and the issuance of new shares. The specific structure of the Acquisition will be finalized in the definitive transaction documents.
Following the signing of the MOI, the Target Company and the performance guarantors will fully cooperate with the company in conducting necessary due diligence for the Acquisition. The estimated consideration for the Acquisition is not to exceed HK$100 million. The final consideration will be determined based on an amount mutually agreed upon by the parties following the company's due diligence, audit, and valuation processes.
The Target Company Shareholders and the Target Company Beneficial Owners will provide performance guarantees to the company regarding the Target Company's cumulative audited net profit and cumulative net cash flow from operating activities during a specified commitment period.
The MOI grants the company an exclusivity period from the signing date until either the execution date of a formal acquisition agreement or the 90th day after the MOI signing date, whichever is earlier. Apart from clauses concerning this exclusivity period, confidentiality, cost allocation, governing law, dispute resolution, and legal validity, the other terms of the MOI are non-binding.
The group has long focused on the research, development, and practical application of cutting-edge technologies such as artificial intelligence and big data analytics. It is committed to providing high-value-added IT solutions and professional services to key industries including finance, healthcare, transportation, logistics, as well as general industry clients.
The Target Company and its subsidiaries (collectively, the "Target Group") are dedicated to providing performance-oriented marketing solutions for global business growth, powered by AI data analytics. The group intends to further deepen the application of AI, big data analytics, and other frontier technologies for clients in specific and general industries through the acquisition of the Target Group. This will supplement the group's service offerings with high-value-added solutions aimed at helping clients increase sales revenue and profitability, thereby extending the group's IT solution service chain, enhancing customer retention, and potentially generating synergies with the group's existing business.
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