HSSP INTL (03626) announced that on February 7, 2024, the buyer Hang Sa...
According to Zhitong Finance App, HSSP INTL (03626) announced that on February 7, 2024, the buyer Hang Sang (Siu Po) Holding Limited (a wholly-owned subsidiary of the company) signed an agreement with the seller Baijie (Hong Kong) and the target company Tianyao Group to acquire 91% of the target company's shares at a cash cost of HK$8.645 million. The target company mainly operates cafes in Hong Kong, providing delicious coffee and a variety of Western and Japanese dishes.
Upon completion, the target company will become a non-wholly-owned subsidiary of the company, and the target company's financial performance, assets and liabilities will be consolidated into the Group's consolidated financial statements.
The acquisition is a valuable opportunity to expand the Group's business into the food and beverage industry in Hong Kong, which is expected to contribute to the Group's long-term growth and development. The acquisition diversified the Group's business, and the Group's existing food sales and distribution business can be a specific source of supply for the target company's cafe business. Through acquisitions, the Group can obtain direct market information from cafe customers, thereby enhancing the Group's business in food sales and distribution. Furthermore, the target company's profit after tax from the date of registration (i.e. August 18, 2022) and up to August 31, 2023 is approximately HK$1.3 million. The board believes that the acquisition may increase the company's profitability.