PACIFIC LEGEND (08547) plans to further acquire 40% equity stake in Hong Kong Tysun Eco-Agriculture Development for HKD 4.5 million.

PACIFIC LEGEND (08547) announced that on September 23, 2024, the company's wholly-owned subsidiary, JF (Greater Bay) Group Company Limited, intends to acquire an additional 40% equity stake in Hong Kong Taichen Ecological Agriculture Development Limited from Yin Jinying, at a price of HK$4.5 million. Of this amount, HK$4.0215 million will be paid in cash, and HK$0.4785 million will be paid by the company through the issuance of shares at the issue price to the seller. The issue price of each share is HK$0.165. As of the date of this announcement and immediately prior to completion, the target company is 60% owned by the seller and 40% owned by the buyer; the Chinese company (Huizhou Taichen Ecological Agriculture Development Limited) is 50% owned by the target company and 50% owned by an independent third party. The Chinese company is mainly engaged in animal husbandry. The directors believe that the acquisition is a positive investment opportunity for the company to expand and diversify its business portfolio. The board notes that the Chinese company has generated stable revenue and profits in the past two fiscal years. Unlike the group's furniture business, the Chinese company's animal husbandry business receives stable demand support from CHINA FOODS and has been less affected by COVID-19. The board expects that the recovery of the Chinese economy from COVID-19 will also benefit the Chinese company's business. Given the business prospects of the Chinese company, it is believed that the investment in the Chinese company will bring stable and additional sources of income to the group as the Chinese company's business further develops. Additionally, if the Chinese company fails to achieve the expected profit level, the seller's profit guarantee and repurchase obligation will safeguard the interests of the group.