Value Convergence Holdings Ltd. has agreed to acquire an 18% stake in Hackett Enterprises Ltd. from CVP Financial Group Ltd. for HK$160 million.
Apex Treasure International Ltd., an indirect wholly owned unit of Value Convergence, will settle the amount through an issue of unsecured bonds, which bear an interest rate of 2% per year. The bonds are also convertible into 123,076,923 Value Convergence shares, or about 15.49% of its existing shared capital and about 13.41% of its enlarged share capital, at HK$1.30 apiece.
The acquisition, subject to the fulfillment of a number of conditions, will help Value Convergence expand its market share in the loan financing business and gain a foothold in the Chinese market, according to a March 8 filing.
Hackett Enterprises is primarily engaged in providing loan financing and financial consultancy services in China and money lending services in Hong Kong.
