WAN KEI GROUP (01718) announced that on November 25, 2025, the buyer, Chi Kin Limited (a wholly-owned subsidiary of the company), entered into a sale and purchase agreement with the seller WANYOU (GROUP) HOLDINGS LIMITED, the target company Wanyou Technology (Hong Kong) Limited, and the seller's guarantor Mr. Wong Hon Keung. According to the agreement, the seller conditionally agreed to sell, and the buyer conditionally agreed to purchase, 51% of the issued share capital of the target company for a total consideration of HK$15 million.
Upon completion, the target company will be 51% owned by the buyer, becoming an indirect non-wholly-owned subsidiary of WAN KEI GROUP. The financial performance, assets, and liabilities of the target group (comprising Wanyou Technology (Hong Kong) Limited, Wanyou Sapphire Group Limited, Wanyou Amber Group Limited, and Global Selection Limited) will be consolidated into the group's financial statements. The seller will retain a 49% stake.
The terms of the acquisition were negotiated fairly by the parties, taking into account the following factors: - The valuation of the 51% stake was determined by an independent appraiser using the market approach, primarily applying a median price-to-earnings (P/E) ratio of 15.05 from comparable listed companies to the target company's historical earnings over the 12 months ending on the valuation date (September 30, 2025). - The target company's past performance, consolidated net asset value, and business prospects were also considered.
The board believes the acquisition aligns with the group's strategic goal of rapidly expanding its presence in the e-commerce sector. The target company's expertise in e-commerce live streaming is highly complementary to WAN KEI GROUP's operations. By sharing sales channel resources and enhancing technological capabilities, both parties can achieve significant synergies, improving operational efficiency and enabling a more comprehensive product offering for customers.
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