HG Semiconductor Limited has announced plans to acquire full ownership of two Hong Kong-based target companies that collectively hold around 8.34% and 4.64% equity interests in Shenzhen Jiahong. Under the proposal, one acquisition involves HK$73,388,000 settled by the issuance of 146,776,000 new shares at HK$0.50 each, while the other involves HK$40,816,000 settled by a promissory note.
Upon completion, HG Semiconductor Limited’s indirect ownership in Shenzhen Jiahong would rise from approximately 60.30% to around 73.28%. Shenzhen Jiahong, through its subsidiary, focuses on research, development, and manufacturing of gallium nitride (GaN) chips, epitaxial wafers, and related semiconductor devices. The new share issuance under the first acquisition would represent roughly 13.52% of the company’s enlarged share capital.
Because certain sellers are associates of the company’s substantial shareholders, the transactions qualify as both discloseable and connected under the Listing Rules. Relevant approvals from independent shareholders are required. A circular containing further details, including valuation findings and an independent financial adviser’s opinion, is expected before 23 December 2025. HG Semiconductor Limited also notes that completion remains subject to fulfillment of specified conditions, and investors are advised to act with caution.
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