Update: Time Interconnect acquires target for HK$460m.

Time Interconnect Technology Limited announced a major transaction to acquire the entire issued share capital of the Target Company for HK$460,000,000. The acquisition, a major transaction under Listing Rules, will be settled with HK$130,000,000 in cash and HK$330,000,000 through the allotment and issuance of Consideration Shares under a general mandate. The maximum number of Consideration Shares to be issued is 32,531,545, priced at a minimum of HK$10.144 per share, representing a 20.00% discount to the closing price on the S&P Agreement date.

The company will also procure the Target Group to repay Shareholder's Debt not exceeding HK$190,000,000. Upon completion, the Target Company, an investment holding company with operations in copper wire products manufacturing, will become a direct wholly-owned subsidiary of Time Interconnect Technology. The acquisition is expected to enhance the Group’s supply chain resilience and operational efficiency by integrating copper wire production.

The Vendor has agreed to a 48-month lock-up period for the Consideration Shares, with staggered releases: 40% after 24 months, an additional 30% after 36 months, and the final 30% after 48 months. The transaction is subject to various conditions precedent, including regulatory approvals and satisfaction with due diligence.