Tycoon Group clarifies valuation for put option exercise

Tycoon Group Holdings Limited (HKEX:3390) has issued a supplemental announcement clarifying the valuation process behind the exercise of its put option, initially announced on February 5, 2025. The valuation of CWA Group, a key factor in determining the exercise price of HK$106 million, was based on 51% of the valuation of CWA Group reported on by an independent valuer. The analysis utilized a discounted cash flow (DCF) method, forecasting CWA's financial performance from January 1, 2025, to December 31, 2029, with sales growth peaking at 15.3% in 2027. A discount rate of 12.5% was applied, factoring in systematic and non-systematic risks, along with a terminal growth rate of 2%. Because ECF had not paid the Remaining Consideration, the Exercise Price that is required to be paid by Dynasty Garden shall be equal to the amount of the Exercise Price in excess of the Remaining Consideration, being a net amount of HK$46,000,000 to ECF.