Zhitong Financial App News, Super Media Holdings (00072) announced that on August 22, 2023, the buyer (the company is directly wholly owned by e-Starship Limited), the seller, and the company (acting as the buyer's guarantor) entered into a sales agreement. According to the purchase and sale agreement, the buyer conditionally agreed to acquire 100,000 shares of the target company (accounting for about 7% of the target company's issued share capital). The initial cost was RMB 244.926 million, which will be paid in cash.
After completion, the buyer's interest in the issued share capital of the target company will increase from about 70% to 77%, and the target company will become a subsidiary company with about 77% of the company's equity. The financial results of the target company have been and will continue to be consolidated in the Group's financial statements.
According to reports, the seller is Hong Kong Seven Wolves Investment Holdings Limited. The target company is Hyundai Digital Holdings Limited, a limited company incorporated in the Cayman Islands, mainly engaged in investment holdings. The target company's subsidiaries are mainly engaged in digital media business in China and the UK. As of December 31, 2022, the target group's audited net consolidated asset value was approximately RMB 256 million.
According to the announcement, the acquisition will give the group more control over the target company's operations to ensure the efficiency and management of its digital media business and enhance the Group's influence in the metaverse business. The acquisition will also increase the profit attributable to the company's equity shareholders. Since the target group's business operations in the digital media industry (which can be integrated with the group's metaverse business) are consistent with the overall development goals of the group's business, the board of directors believes that the acquisition can strategically enhance synergy and enhance the group's future revenue and profits through the integration of digital, artistic and metaverse technologies.