(31st March 2016 －Hong Kong) Rentian Technology Holdings Limited ( "Rentian Technology" or the "Company", and together the "Group") (Stock Code: 00885) announce that the Company will acquire 51% of the issued share capital of the Target Company at the Consideration of approximately HK$1.1 billion and the Target Group will become an indirect non wholly-owned subsidiary of the Company.
The Target Group is principally engaged in providing one-stop solution, including but not limited to marketing research, software design, IT solution and strategic business consultation and development, to companies in the commodities industry. The Acquisition will strengthen the software development of the Group and diversify the Group's business into internet finance and related sectors, including trading management and hosting services for bulk commodities supply chain, information broadcasting, internet-of-things storage and logistics facilitation, and transaction settlement and electronic payment system.
Pursuant to the Agreement, each of the Vendors has jointly and severally, guaranteed to the Purchaser that the consolidated exceptional items of the Target Group, based on the financial statements prepared in accordance with Hong Kong Financial Reporting Standards, approximately HK$0.14 billion in 2016 and approximately HK$0.22 billion in 2017.
Considering the business development and future prospects of the Target Group in the medium to long term and the Guaranteed Profit etc, the Company believes that the Consideration is fair and reasonable and the terms and conditions of the Acquisition are fair and reasonable and in the interests of the Company and its Shareholders as a whole.
Mr. Choi Chi Fai, the Executive Director of the Company, said, "given the Target Group's extensive experience in the IT and platform operation, we consider that the Acquisition will strengthen the software development of the Group and diversify the Group's business into a one-stop solution provider in the commodities industry. We are optimistic on the business prospects of the Target Group and considers that the Acquisition would further enhance the profitability of the Group."
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