HYGEIA GROUP (01650) announced that on April 18, 2024, the company plans to acquire 51% of Dongxing Life Convenience Store (Shenzhen) Co., Ltd.'s shares from Dongxing Holdings (Wuhan) Co., Ltd. at a cost of HK$34.2 million. After completion, payment will be made through the issuance of convertible notes. The initial conversion price of the notes is HK$0.09 per share converted.
According to reports, the target company is mainly engaged in operating comprehensive convenience stores under the Dongxing Lifestyle Convenience Store brand and providing e-commerce and online convenience store services. As of the date of this announcement, the target company owned a non-wholly-owned subsidiary, Wuhan Tianxuan Trading Co., Ltd.
After considering the upward trend in consumer spending in China and profit guarantees provided by the seller, the board believes that the acquisition provides valuable business opportunities for the Group to expand its business and diversify its revenue sources.