Geehy International Launches HK$0.61 Mandatory Cash Offer for MEGAIN, Already Controls 50.56% Stake

Bulletin Express
Jul 21

• 22 July 2026 – Geehy International Limited has dispatched a Composite Document announcing an unconditional mandatory cash offer for all remaining shares of MEGAIN Holding (Cayman) Co., Ltd. at HK$0.61 per share. The offer price matches MEGAIN’s last reported audited net asset value per share (RMB 0.5517, approximately HK$0.61) and will not be increased.

• Offer mechanics: – Offer period: 22 July 2026 to 4:00 p.m. (HK time) on 12 August 2026, with results to be published by 7:00 p.m. the same day. – Settlement: cash consideration (net of 0.10% seller’s stamp duty) to be mailed within seven business days after valid acceptance. – Maximum cash outlay (excluding 124.56 million “Undertaking Shares” that will not be tendered) is capped at HK$111.74 million, funded by an ICBC International Securities loan and Geehy’s internal resources.

• Current shareholding: Geehy acquired 211.00 million shares (40.67%) via a share purchase agreement and subscribed for 103.75 million new shares under a specific mandate, lifting its stake to 314.75 million shares, or 50.56% of MEGAIN’s enlarged issued capital of 622.50 million shares. The remaining 307.75 million shares are subject to the offer; 183.19 million are in public hands and can be tendered.

• Background numbers: – Offer values MEGAIN’s equity (excluding non-tendering Undertaking Shares) at up to HK$111.74 million; full acceptance including Undertaking Shares would equal HK$187.73 million. – Offer price represents discounts of 18.7% to the Last Trading Day close of HK$0.75 and 68.6% to the HK$1.94 closing price on the Latest Practicable Date.

• Target financial snapshot (FY 2025, year end 31 Dec 2025): – Revenue: RMB 155.34 million, +3.7% YoY. – Net loss: RMB 83.70 million vs profit of RMB 9.66 million in FY 2024. – Net assets: RMB 286.94 million (HK$0.61 per share).

• Post-offer intentions: Geehy plans to maintain MEGAIN’s listing status, undertake a strategic review but keep existing operations and workforce intact. Board changes are expected after the offer closes, subject to regulatory requirements.

• Important dates: – Offer opens: 22 July 2026 – Offer closes: 4:00 p.m., 12 August 2026 (unless extended) – Payment dispatch deadline: 21 August 2026

Independent board committee and Lego Corporate Finance recommend that minority shareholders accept the offer, deeming the HK$0.61 price fair and reasonable in light of MEGAIN’s recent losses and uncertain industry outlook.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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