MOG Digitech Holdings Limited (01942) released a supplemental announcement on 18 March 2026 detailing the valuation work underpinning its subscription for preferred shares in KUN International Group Limited, a transaction first disclosed on 23 July 2025 and completed on 5 August 2025.
Transaction Overview • Consideration: Based on a pre-money valuation of KUN at US$100.00 million. • Metric applied: Enterprise value (EV) to total payment value (TPV). • Reference period for TPV: US$855.75 million for the nine months ended 31 March 2025. • Completion: All conditions precedent satisfied on 5 August 2025.
Valuation Methodology • Approach: Market – comparable company method. • Rejected approaches: Cost (historical focus) and income (heavy forecasting assumptions). • Comparable peers: Visa, Mastercard, PayPal, Coinbase and Block; Marqeta and Mogo were excluded due to data irregularities and regulatory issues. • EV/TPV multiples (last twelve months to 30 June 2025): – Range: 0.0445–0.1947 times – Mean: 0.0832 times • Derived EV: 0.0832 × US$855.75 million = US$71.20 million. • Premium: Pre-money valuation implies a US$28.80 million premium versus the mean-derived EV. • Sensitivity: Excluding Visa, Mastercard and PayPal lifts the mean multiple to 0.1355 times, implying an EV of US$116.00 million and a US$16.00 million discount to the agreed valuation. • Implied multiple: The US$100.00 million valuation equates to 0.1169 times EV/TPV—within the peer range.
Board Conclusion The board considers the US$100.00 million pre-money valuation “fair and reasonable,” citing: 1. Rapid TPV growth (over 200-fold year-on-year in March 2025). 2. Implied multiple sits well inside the observed market band. 3. Rising TPV in April–June 2025, not captured in the valuation base.
Strategic Rationale The investment provides MOG Digitech with access to KUN’s stablecoin payments infrastructure, enabling: • Expansion of the group’s digital payment solutions beyond mainland China. • One-stop insurance client services (product selection, underwriting, policy management). • Dual payout options (fiat or stablecoins) for insurance commission distribution.
Licensing Snapshot of KUN • Virtual asset service provider licence – Poland (EU coverage). • Digital payment token licence application – Singapore. • Trust or company service provider and money service operator licences – Hong Kong; applications in progress for Type 1 and Type 4 SFC licences.
Post-Transaction Shareholding of KUN Key stakes: KUN Asia Pacific Limited 29.48%, KUN FinTech Limited 28.08%, KUN Research 6.84%, MOG Digitech subsidiary Zhongbao Digitech (HK) Limited 5.27%, BAI Capital–related funds 13.16%; balance held by other institutional investors.
All other terms in the original 23 July 2025 announcement remain unchanged.
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