On July 11, 2024, Most Company C Limited (an indirectly wholly-owned subsidiary of the company) entered into a sale and purchase agreement with the seller according to the terms and conditions of the agreement to purchase and the seller agreed to sell the sale shares (totaling 31% of the issued share capital of the target company To Be Honest Limited) for HKD 2.9082 million.
As of the announcement date and completion, the target company is respectively owned by the seller A for 37.5%, the seller B for 37.5%, the seller C for 5%, and the buyer for 20%.
The completion will be implemented immediately after signing the sale and purchase agreement. After completion, the buyer will own 51% of the target company, seller A will own 22.97%, seller B will own 22.97%, and seller C will own 3.06%. The target company will no longer be an associate company of the group, but will become an indirect non-wholly-owned subsidiary of the company, and the financial performance of the target company will be consolidated into the group's financial statements. The target company's main business in Hong Kong is to provide advertising and promotion services, which is consistent with the group's main business. Considering the financial performance of the target company and the professional knowledge of its key personnel in the advertising industry, the directors believe that the acquisition of controlling equity interest in the target company can bring synergies to the group, which is conducive to the group's market position in the advertising and media markets, and also conducive to expanding the customer base and increasing revenue. The directors believe that the acquisition is in line with the group's business strategy.
Most Kwai Chung mainly engages in the business of providing advertising and promotion services in Hong Kong, which is consistent with the group's main business. Considering the financial performance of Most Kwai Chung and the professional knowledge of its key personnel in the advertising industry, the directors believe that the acquisition of controlling equity interest in Most Kwai Chung can bring synergies to the group, which is conducive to the group's market position in the advertising and media markets, and also conducive to expanding the customer base and increasing revenue. The directors believe that the acquisition is in line with the group's business strategy.