Alpha Pro Holdings (00948) announced that on June 11, 2024, the buyer Vantage Edge Investments Limited (a direct wholly-owned subsidiary of the company) has entered into a sale and purchase agreement (Smart Front) with Allied Services (as the seller), under which the buyer will acquire and Allied Services will sell the sale shares (Smart Front) (representing the entire issued share capital of Smart Front (a company that holds 80% of the issued shares of Hego Holding) and Allied Services will transfer shareholder loans to the buyer for a total consideration of HKD 17.5 million.

On the same day, the buyer entered into a sale and purchase agreement (Hego Holding) with Mr. Zhou (as the seller), under which the buyer will acquire and Mr. Zhou will sell the sale shares (Hego Holding) (equivalent to 20% of the issued shares of Hego (Hong Kong) Limited), for a consideration of HKD 4.375 million.

The announcement stated that in order to diversify the group's business and introduce new sources of income, the group started logistics business in March 2023 and has been seeking opportunities to further expand this business segment. Considering the consolidation of the logistics business through the acquisition and the fairness and reasonableness of the consideration of the acquisition (with reference to the net asset value of Hego Holding), the directors (including independent non-executive directors) believe that the consideration of the acquisition is fair and reasonable and that the acquisition provides an opportunity for the group to expand its logistics business and is expected to bring additional income to the group in the future.