Summary by Moomoo AI
TREK INTERNATIONAL HOLDINGS LIMITED (TREK INTERNATIONAL) ANNOUNCED A SERIES OF SIGNIFICANT TRANSACTIONS, INCLUDING THE SALE OF ALL ISSUED SHARE CAPITAL OF KP GLOBAL, THE DECLARATION OF A SPECIAL DIVIDEND, AND A SERIES OF TRANSACTIONS RELATED TO GATEWAY CONVERTIBLE BONDS. The main reason behind these deals is that Trember International's Gatwick and Paladin brands have been in continuous losses since their acquisition in 2019, totaling more than $1 million in losses. In order to mitigate the impact of these brands on the Group's profitability and cash flow, the Ding family of shareholders proposed the acquisition of KP Global. UPON COMPLETION OF THE TRANSACTION, TREK INTERNATIONAL WILL DECLARE A SPECIAL DIVIDEND OF APPROXIMATELY $151 MILLION TO SHAREHOLDERS. IN ADDITION, TREK INTERNATIONAL WILL ISSUE CONVERTIBLE NOTES IN THE AMOUNT OF HK$500 MILLION AND PROVIDE A TRANSITIONAL SERVICES AGREEMENT. All transactions are subject to approval by independent shareholders at the Extraordinary General Meeting.