According to the Zhitong Finance App, Elite Exchange Group (01775) announced that on March 30, 2023, the buyer (Huancheng Development Group Co., Ltd., an indirect wholly-owned subsidiary of the company), the seller and the target company (Lingyou Education Co., Ltd.) entered into the agreement. The buyer conditionally agreed to purchase the sales shares at a cost of HK$3,968,400. The purchase cost will be HK$1.05 million through cash within 5 business days after the completion date; and the company will pay for the remaining HK$2,918,400 of the purchase price to those share sellers and issue 3,648 million shares; and the buyer has The conditions agreed to subscribe for 90,000 new target shares to be distributed and issued by the target company. The subscription price was HK$5,2111,600, which must be paid through a sale upon completion. Total cost of HK$9.18 million, including acquisition costs and subscription costs. Immediately after completion, the buyer will hold a total of 30% of the total number of target shares issued.
According to reports, the issue price of each premium is HK$0.8 per share, which is about 102.53% of the closing price of HK$0.395 per share reported on the Stock Exchange on the date of the agreement; 3,648 million cost shares are equivalent to about 0.72% of the number of issued shares expanded through allotment and issuance of premium shares (assuming that, with the exception of the company's issuance of premium shares, there was no change in the company's share capital before completion).
The target company mainly engages in overseas study and immigration services under the business name “LINKEDU” in Hong Kong, China, including providing education consulting services relating to the United Kingdom, Australia, the United States, Canada and New Zealand (such destinations); and the provision of admission preparation packages for students applying for secondary schools and universities in these destinations, including but not limited to admissions consultation, entrance exam preparation, interview preparation, personal statement preparation and internship experience.
According to the announcement, the acquisition of the target company (with a dynamic management team at the helm of a dynamic management team over the past few years, an enterprise with excellent financial performance and rapid growth) is a strategic opportunity for the Group to further develop and expand its existing business relating to overseas education consulting and preparation services in Hong Kong, covering (including) student advisory services and admissions preparation packages designed for studying abroad, and creating synergies for similar existing businesses of the Target Group, including but not limited to basic and education for students and education advisors, through the sale of the target company's expertise and resources (including but not limited to basic and education for students and education advisors) Organization Network) Manages and operates asset companies (companies that are mainly engaged in providing such overseas education services to the Group).
Similarly, the Group also expects target companies to seize this opportunity by utilizing the Group's diverse resources (including but not limited to the Group's influential brand effect among Hong Kong students and parents, extensive access to consumer information for students of different age groups, mature market penetration, extensive business networks with local and overseas schools and institutions, and positive recognition of the Group's brand and business in Hong Kong and overseas).