NewWing Lee to invest HK$300m in China denture processing business
Electronics manufacturer says the acquisition of View Bright will be an opportunity to diversify its business
Wing Lee Holdings, a manufacturer of electronic components for computers and telecoms equipment, plans to acquire View Bright, a denture processing business in China, for HK$300 million, the company said in a filing to the Hong Kong stock market on Friday.
It said the two parties signed a non-legally binding term sheet on October 16. Wing Lee will pay HK$100 million in cash and the remaining HK$200 million will be in the form of new shares at an issue price of 40 HK cents each.
Wing Lee said the planned acquisition was a “prime opportunity” to diversify the group’s business portfolio into the denture processing business in China and that it would represent an additional income stream.
The company said it also entered into a non-binding framework agreement with an institutional investor for the issuing of 250 million new shares at 40 HK cents per share.
The placement shares represent 8.88 per cent of the company’s enlarged issued share capital. Wing Lee said completion of the acquisition and share placement are “inter-conditional”.
Shares of Wing Lee were trading at HK$0.375 on Friday morning, up 4 per cent from Thursday’s closing price.