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HONG KONG, May 18, 2015 - (ACN Newswire) - Sinoref Holdings Limited ("Sinoref" or the "Group") (Stock code: 1020) announced on Friday that it planned to acquire the entire issued share capital of the e-commerce group, Soaring International Holdings Limited ("Target Company") - owner of the famous "VT Zero" e-commerce brand - at a consideration of HK$380 million, with HK$166.4 million to be paid by issuing consideration shares and HK$213.6 million to be paid by issuing promissory notes.
The consideration shares are to be allotted and issued at an issue price of HK$0.32 per share, representing a discount of approximately 31.91% to the closing price of HK$0.47 per share on 15 May. The consideration shares account for about 23.05% of Sinoref's enlarged share capital after the allotment and issuance of consideration shares. In addition, the Group is to issue HK$213.6 million promissory notes with a term of three years and an annual interest rate of 2%. The Seller has guaranteed Sinoref that the audited consolidated EBITDA for the year ended 31 March 2016 of the Target Company would be no less than HK$10 million.
Mr. Bill Lui, CEO of Sinoref, said, "China's premier Li Keqiang has proposed the "Internet Plus" strategy at the "Two Sessions" this year in order to facilitate the integration between the modern manufacturing industry and the mobile internet, cloud computing, big data and the Internet of Things, encourage the development of e-commerce and guide internet enterprises to enter international markets. Conventional industries embracing the internet have created enormous opportunities for e-commerce business across different sectors. The acquisition enables Sinoref to enter e-commerce and IT industries, thereby expanding its income sources and adding a new growth driver for the Group, on top of its existing businesses of the manufacturing and sales of high-end steel flow control products and paper converting equipment."
The Target Company, which owns the famous "VT Zero" e-commerce brand, is mainly engaged in e-commerce and IT businesses. It procures products including cell phones and gaming accessories, home and garden products, computer and peripheral products from manufacturers in China through its purchase office in Shenzhen, China, and then resells these products to worldwide distributors and retail customers, including the US, the UK, Canada, Australia, etc., around the world through e-commerce platforms such as Ebay, Amazon and Alibaba. Besides, it has more than 8 year experiences and has attracted interested customers from over 180 countries and accumulated over 2.50 million customers. Moreover, it also provides e-commerce solutions and related support services, as well as selling IT products to customers. To capture the potential growth in the e-commerce sector, the Target Company plans to establish its own e-commerce platform as one of its own sales channels starting in early 2017 in order to generate additional income.
The proposed acquisition is subject to the fulfillment of certain conditions set out in the agreement. An Extraordinary General Meeting is to be convened and held for shareholders to propose, and if deemed suitable, to approve the agreement and the transactions contemplated thereunder.
Contact:
Strategic Financial Relations(China)Limited
Ms. Karen Hung Tel: 2864 4845 E-mail: karen.hung@sprg.com.hk
Ms. Winnie Lau Tel: 2864 4876 E-mail: winnie.lau@sprg.com.hk
Ms. Brandi Mo Tel: 2114 4941 E-mail: brandi.mo@sprg.com.hk
Ms. Mavis Wu Tel: 2864 4899 E-mail: mavis.wu@sprg.com.hk
Topic: Press release summary
Source: Cybernaut International Holdings Company Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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