Midas International Holdings Limited agreed to acquire Ever Favour Limited from Chuang's Consortium International Limited for approximately HKD 250 million.
For the period ended March 31, 2017, Ever Favour reported loss after tax of HKD 22 million, net liabilities of HKD 22 million and total assets of HKD 97.7 million. The transaction completion is conditional on the approval by the independent shareholders, statutory governmental and regulatory approvals, third party approval and completion of the reorganization of Ever Favour. An independent committee has been formed to advise the Independent shareholders in relation to the proposed transaction. As per announcement of August 21, 2017, shareholders of Midas International Holdings Limited approved the transaction in the extraordinary general meeting. Chuang's Consortium and its associates, which together hold 2.01 billion shares, representing approximately 60.82% of the existing issued share capital of Midas are required to abstain from voting. If the conditions are not met by December 31, 2017, the agreement shall lapse. The completion will take place on the third business day after the last outstanding conditions have been fulfilled. Chuang's Consortium International will use the proceeds from sale of this transaction for the business development. Somerley Capital Limited acted as a financial advisor for Midas International. Investec Capital Asia Limited has been appointed as the independent financial adviser to advise the independent board committee and the independent shareholders.