Mystery buyer attempts to acquire major Convoy shareholder’s stake ahead of crucial vote, court ruling
- AGBA Acquisition, a Hong Kong-headquartered company listed on Nasdaq, is attempting to acquire the shares of Convoy’s second-largest shareholder, Kwok Hui-kwan
- The potential deal comes just a week ahead of a crucial vote as Kwok seeks to take control of the financial firm
A mysterious Nasdaq-listed company is trying to buy shares from a major shareholder of Convoy Global Holdings ahead of a crucial vote next week, adding a new twist to the lengthy power struggle between its owners.
AGBA Acquisition, a Hong Kong-headquartered company founded in 2018 which was listed in Nasdaq in May last year, is attempting to acquire second-largest shareholder Kwok Hui-kwan’s entire 29.91 per cent stake in Convoy Global Holdings, according to two sources.
The deal is still in the initial stages of discussion, and there is no confirmation it will go ahead and bids have not been offered, the sources said, adding that the buyer would like to see Kwok cancel all lawsuits against the company.
Neither Convoy nor Kwok’s representative would comment on the deal. Two sources close to Kwok said there were no formal bids.
The Post called AGBA Acquisition’s telephone number listed in its US regulatory filings, but it was not a working number. A message sent to its chief executive, Gordon Lee, did not elicit an immediate reply. The company has no website while its postal address is an office building in Tsim Sha Tsui.
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Kwok, the 29-year-old son of Shenzhen-based developer Kaisa Group’s founder Kwok Ying-shing, spent about HK$800 million (US$103 million) to purchase his stakes in the company in mid-2017, according to sources.
His purchase came just a few months before Convoy shares were suspended from trading in December 2017, after the Independent Commission Against Corruption and the Securities and Futures Commission launched an investigation into its financial affairs.
The investigation has resulted in its former executive director Roy Cho Kwai-chee and two other former executives facing trial for allegedly conspiring to defraud Convoy and its investors in 2016 over an HK$89 million investment connected to him. The judge will give the verdict on November 30.
Convoy, which offers insurance and pension services advisory services, had over 1,000 staff and almost 100,000 customers, according to filings from 2017.
As the company has not issued any financial statement over the past three years, the stock exchange decided to delist it, but it is appealing against the decision.