Xindong (02400) issued an announcement. On April 9, 2024, the company and the seller (eDragon...
Zhitong Finance App News, Xindong (02400) announced that on April 9, 2024, the company entered into a sales agreement with the seller (eDragon and LY Development) and the buyer. The buyer (that is, a wholly-owned subsidiary of the company) conditionally agreed to the acquisition, while eDragon and LY Development individually and conditionally agreed to sell the target shares, which together account for 35% of the shares of the target company X.D. Global (HK) Limited, subject to the terms and conditions of the sales agreement limit.
According to the sale agreement, the total initial cost of the acquisition was US$21.6393 million, of which US$16.693,200 was payable to eDragon and US$4.9461 million to LY Development, which would allocate and issue 7.4057 million shares and 2.194,300 consideration shares to eDragon and Ly Development respectively at the issue price of HK$14.20 per share to pay a total of US$173.393 million; and the buyer will pay EDragon and LY respectively Development paid $3,3171,000 and $982,900 in cash.
9.6 million consideration shares accounted for approximately 2.00% of the company's issued share capital at the date of this announcement, and approximately 1.96% of the company's issued share capital after the expansion of the cost shares (assuming that there was no other change in the total number of shares issued by the company during the period between the date of this announcement and the allocation and issuance of consideration shares).
According to reports, the target company is mainly engaged in overseas distribution and operation of high-quality games. As of the date of this announcement, the target company was held 65% by the buyer (a wholly-owned subsidiary of the company) and was an indirect non-wholly-owned subsidiary of the company. The financial results of the target company as of the date of this announcement have been comprehensively included in the Group's financial results. After completion, the target company will become an indirect wholly-owned subsidiary of the company, and its financial results will still be comprehensively included in the group's financial results even after the acquisition.
Considering major trends in the Group's industry, the Group has always adopted globalization as one of its core strategies, and has always strived to increase profits from overseas markets. The target company has always been engaged in overseas distribution and operation of high-quality games, and has accumulated rich experience in this field and achieved rich profits. The acquisition will help strengthen the interests of the target company and the Group's core employees, thereby strengthening the Group's overseas operations. At the same time, through the acquisition, the Group will be able to obtain all of the target company's profits in the future without sharing them with the target company's minority shareholders.