Seven Elements to acquire Hong Kong asset manager for up to HK$10m

Seven Elements Investment Holdings Limited (formerly Zhaobangji Lifestyle Holdings Limited) announced a proposed acquisition of an asset management company for a consideration not exceeding HK$10,000,000. The acquisition, formalized through a sale and purchase agreement, involves securing 100% of Legend Arb Advisors Limited, a Hong Kong-based company licensed to carry out Type 4, Type 5, and Type 9 regulated activities under the SFO.

The consideration will be paid in two tranches: HK$5,000,000 at completion, and the unaudited net asset value within twenty-one business days post-completion. The target company’s net asset value was approximately HK$4,300,000 as of June 30, 2025, and it currently manages an open-ended fund with an asset size of HK$27,000,000. This acquisition is part of Seven Elements' strategy to diversify its business sources, especially given the slowdown in the real estate market.

The completion is subject to several conditions, including regulatory approvals for Seven Elements becoming a substantial shareholder, and the asset management company maintaining its required licenses and responsible officers. The acquisition is not considered a discloseable transaction under Chapter 14 of the Listing Rules.