Most Kwai Chung (01716) – 65% Stake Sold at HK$122.20 million; Mandatory Unconditional Offer at HK$0.6963 per Share

Bulletin Express
Mar 13

Transaction Overview • Brave Steed Legacy Limited (Offeror) acquired 175.50 million shares of Most Kwai Chung Limited (MKC, 01716), equal to 65% of issued share capital, for HK$122.20 million, or HK$0.6963 per share. • Completion occurred on 12 Mar 2026. Prior to the transaction, the Offeror and its concert parties held no shares in MKC.

Mandatory Unconditional Cash Offer • In compliance with Rule 26.1 of the Takeovers Code, Kingston Securities will, on behalf of the Offeror, make a mandatory unconditional cash offer for the remaining 94.50 million shares (35% stake) at HK$0.6963 per share. • Full acceptance would require a maximum cash outlay of HK$65.80 million and values MKC’s entire equity at HK$188.00 million. • The Offeror has stated it will not increase the offer price.

Financing Structure • The Offeror will fund both the acquisition and the offer via an HK$112.00 million secured loan facility from Kingston Securities, collateralised by the acquired and to-be-acquired shares. Kingston Corporate Finance has confirmed sufficient financial resources are available.

Pricing Metrics • Offer price represents a 42.45% discount to the last trading day close of HK$1.21 (5 Mar 2026). • Offers a premium of 257.87% to unaudited net asset value per share of HK$0.1946 as at 30 Sep 2025 and 263.98% to audited NAV per share of HK$0.1913 as at 31 Mar 2025. • Six-month trading range prior to the offer period: HK$0.495–HK$1.21 per share.

Post-Completion Shareholding • Immediately after completion: – Offeror & concert parties: 65.0% – Vendor & concert parties: 2.5% – Public (independent shareholders): 32.5% • Offeror intends to maintain MKC’s Main Board listing and will take steps to ensure the minimum 25% public float is preserved.

Operational Intentions • Existing principal businesses—digital media, print media, and event/artiste services—will continue. • Offeror plans to review operations for long-term strategy; no concrete asset injection or disposal plans have been formulated. • Board changes are contemplated after the offer closes and will comply with Listing Rules and Takeovers Code requirements.

Key Financials of MKC • FY Mar 2025 revenue: HK$93.59 million; net profit: HK$6.38 million; net assets: HK$53.93 million. • FY Mar 2024 revenue: HK$55.20 million; net loss: HK$9.31 million; net assets: HK$46.70 million. • 1H FY 2026 (six months to 30 Sep 2025) revenue: HK$45.05 million; net profit: HK$1.39 million; net assets: HK$55.28 million.

Next Steps • A composite offer document, including the Independent Board Committee’s recommendation and an independent financial adviser’s opinion, will be dispatched within 21 days of 12 Mar 2026. • Trading in MKC shares resumed at 9:00 a.m. on 13 Mar 2026 after a temporary halt.

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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