Guangdong-Hong Kong Greater Bay Area (HKG:1396) has agreed to acquire Wisdom Knight, a BVI-based AI firm, from Champion Road Group, for HK$976.5 million, according to a Wednesday Hong Kong bourse filing.
The consideration will be settled by issuing 310 million new shares at HK$3.15 each under a specific mandate.
Upon completion, Wisdom Knight will become a wholly owned subsidiary, and its financials will be consolidated.
The issue price was negotiated on an arm's length basis and represents a 2,323% premium to the group's net asset value per share as of end-2024, and a nearly 11.3% discount to the last closing price.
Upon completion, Guangdong-Hong Kong will issue 310 million new shares to Champion Road, giving it a 27.6% stake in the enlarged share capital, while the controlling shareholder China GBA Holdings' interest will be diluted to 36.9%.
Shares of the property developer soared nearly 30% in recent trade.
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.