Vobile (HKG:3738) has agreed to acquire On Sun International, developer of the AI video generation platform Dreamesh, for HK$75 million in newly issued shares, according to a Hong Kong bourse filing on Oct. 9.

Vobile will issue 20.6 million shares at HK$3.65 apiece to acquire the entire company from Li Ye. The issue price represents a 21.87% premium to Vobile's Oct. 9 closing price of HK$2.995.

On Sun develops AI video generation and digital watermarking technologies. Vobile said the acquisition would complement its digital content protection business, support AI-powered video production and help reduce token generation costs.

Completion is subject to specified conditions, including regulatory approvals.