MOG DIGITECH (HKEX: 01942) has announced that its wholly-owned indirect subsidiary, Metro Eyewear, has entered into a conditional agreement with Aventure Asia Capital Plt.

Under the terms of the agreement, Metro Eyewear has conditionally agreed to sell, and the buyer has conditionally agreed to acquire, all the issued shares it holds in 12 target companies for a total cash consideration of 10.375 million Malaysian Ringgit.

Upon completion of the transaction, Metro Eyewear will no longer hold any interest in the target companies, and they will cease to be consolidated as subsidiaries of the group.

The target companies consist of the following twelve entities: Caxia Eyewear Sdn. Bhd., Exon Optometry Sdn. Bhd., Fabulous Project Management Sdn. Bhd., Lux Optical Sdn. Bhd., Metro Designer Eyewear Sdn. Bhd., Metro RWG Sdn. Bhd., Modern Pride Sdn. Bhd., MOG (TPU) Sdn. Bhd., MOG Eyecity Sdn. Bhd., MOG Eyewear Holdings (M) Sdn. Bhd., MOG Eyewear Sdn. Bhd., and Success Optic Sdn. Bhd.

As previously disclosed, the company is undergoing a strategic shift towards a lighter, service-oriented business model.

This strategy involves granting non-exclusive, non-transferable trademark licenses, including for the "MOG" brand and related intellectual property, to both previously sold subsidiaries and these target companies.

Licensees are permitted to use this intellectual property on their packaging and in advertising and promotional materials.

In return, they will be required to pay the group licensing fees calculated as an agreed percentage of their monthly revenue.

To ensure brand consistency and enhance performance, the group will provide a comprehensive management and support platform.

This platform will include centralized supply chain management, supplier selection, ongoing training and supervision, tailored promotional and marketing support, regular performance reviews, and remedial training if necessary.

This new model allows the group to maintain its current operational scale while transferring capital expenditure and day-to-day operational costs to the licensees.

It reduces financial risks associated with capital investment, strengthens recurring revenue streams, and enables the group to focus its resources on expanding the licensing network and increasing market share.

Aside from these strategic changes, there are no other significant alterations to the group's existing operations.