Zhitong Finance App News, HM INTL HLDGS (08416) announced that on July 31, 2023, the seller (including HM Investment, an indirect wholly-owned subsidiary of the company) and the buyer (each an independent third party) entered into a purchase and sale agreement. The Wordbee seller conditionally agreed to the sale and the Wordbee buyer conditionally agreed to acquire all of the issued shares of the selling company Bee Wordà rl (including the sales shares); and the Wordcraft seller conditionally agreed to sell and the Wordcraft seller conditionally agreed to sell The Wordcraft buyer conditionally agreed to acquire all of Wordcraft's issued share capital.
Of the shares of the sold company to be sold by the Wordbee seller, the sales shares to be sold by HM Investment account for about 22.85% of the total issued share capital of the selling company. The selling company is a contact person for that company. The Group does not hold any interest in Wordcraft.
The sales group includes the selling company and its subsidiaries (i.e. Wordbee LLC and Wordbee Egypt). The selling company is a technology company incorporated in Luxembourg. It is mainly engaged in business development of content management software and network collaboration spaces, translation process management and globalization/content localization, rental translation and localization of cyberspace, and provision of translation services, localization and globalization for content technology companies in Luxembourg. The company has extensive experience in tools and language technology training and consultation for large-scale projects.
The company invested in selling the company in August 2019 because it believed that subscribing to the sale of the company's shares was in line with the Group's focus and future development strategy at the time. The company believes that selling the services provided by the company will enhance translation procedures and development through computer-assisted translation tools and bring benefits to the Group's business development, thereby enhancing the Group's profitability. Since the subscription, the Sales Group has continued to provide services to and obtain services from the Group, with an upward trend. However, according to the company's 2022 annual report, the service fee payable by the Group to sell the Group for the provision of services to the Group is approximately HK$8,000, a significant decrease of 98.99% from the Group's payable sales group service fee of about HK$795,000 for the year ended December 31, 2021. This significant reduction in service fees (whether receivable or payable to the selling group) indicates that the business activities between the group and the selling group may not be as appropriate and appropriate as planned when the company initially invested in the sale of the company in 2019.