Time Interconnect Technology Limited announced a major and connected transaction to take full control of Time Interconnect Singapore Pte. Ltd. (the “Target Company”) by purchasing the outstanding 51 % stake from its controlling shareholder, Luxshare Precision Limited (“the Vendor”). The initial cash consideration is set at US$12.70 million (approximately HK$98.81 million) and will be funded from the company’s recent share placing.
The purchase price is subject to a post-completion adjustment linked to the Target Group’s net asset value (NAV) as at completion. Should the final consideration exceed US$40 million, any excess will be waived by the Vendor. Completion is conditional upon independent shareholder approval and regulatory clearance under Chapters 14 and 14A of the Hong Kong Listing Rules.
Operational impact • Ownership: Time Interconnect’s stake in the Target Company will rise from 49 % to 100 %, bringing the Target Group—operator of 10 production facilities across China, Germany, Mexico, Poland, Hungary, Slovakia and Turkey—into full consolidation. • Financials: For FY 2025 the Target Group recorded revenue of HK$6.41 billion and net profit of HK$163.74 million, with net assets of HK$193.82 million at year-end. The underlying Leoni LCS Group, acquired by the Target Company in July 2025, generated FY 2025 revenue of HK$12.00 billion and net profit of HK$125.29 million.
Strategic rationale Management highlighted stronger vertical integration between copper-wire production and downstream automotive cable harnesses, immediate market penetration in Europe and the Americas, and enhanced R&D collaboration as principal benefits.
Revised connected-transaction caps Because the Target Group already supplies cable products to Luxshare Precision Industry Co., Ltd. (“Luxshare Precision”), Time Interconnect signed a Second Supplemental Master Supply Agreement to raise annual caps for product sales to the Luxshare Precision Group: • 2026: cap lifted from HK$1.60 billion to HK$3.50 billion • 2027: cap lifted from HK$1.76 billion to HK$5.31 billion • 2028: cap lifted from HK$1.93 billion to HK$5.84 billion
The increases reflect eight months of forecast demand from Luxshare Precision post-completion, a 15 % buffer for price and FX volatility, and a projected 10 % organic year-on-year growth for 2027-2028.
Governance and approvals Given Luxshare Precision’s 65.95 % shareholding in Time Interconnect, both the acquisition and the revised supply caps are classified as connected transactions. Independent directors have formed a committee to evaluate the terms, and Asian Capital Limited has been appointed as independent financial adviser. Chairperson and non-executive director Ms. Wang Laichun, who holds beneficial interests in the Vendor and Luxshare Precision, has abstained from board voting.
A circular detailing the acquisition and supplemental agreement is expected on or before 29 May 2026, followed by an extraordinary general meeting for independent shareholder approval. The company cautions that the acquisition remains subject to conditions precedent and may not proceed.
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