Time Interconnect Technology buys copper wire maker for HK$460m

Time Interconnect Technology Limited announced a major transaction to acquire the entire issued share capital of Dejinchang Investment Limited for HK$460,000,000. The acquisition will be settled partly in cash (HK$130,000,000) and partly through the allotment and issuance of consideration shares (HK$330,000,000) under a general mandate. The issue price for the consideration shares will not be lower than HK$10.144 per share, representing a discount to recent closing prices.

The acquisition aims to diversify the group's reliance on a single country for copper wire supply, integrate upstream raw material production, and enhance product development. Upon completion, Dejinchang Investment Limited and its subsidiaries, which manufacture copper wire products in the PRC, Hong Kong, Thailand, and Vietnam, will become a wholly-owned subsidiary of Time Interconnect Technology. The target group recorded net assets of approximately RMB180,335,000 as at June 30, 2025, and reported a net profit of RMB41,770,000 for the six months ended June 30, 2025.

The transaction is classified as a major transaction under Listing Rules due to applicable percentage ratios being between 25% and 100%. Written shareholder approval has been obtained, negating the need for a general meeting. The acquisition is conditional on various factors, including regulatory clearances and stock exchange approval for the listing of consideration shares.