WK GROUP (02535) proposed to acquire existing shares through the distribution of shares by the controlling shareholder.

WK GROUP (02535) announced that the Chairman of the Board of Directors, non-executive directors, and controlling shareholders (as defined in the Listing Rules) Chen Yongkang reported that WK (BVI) Limited (the seller, a company owned by Chen Xinji, Chen Xinjiang, Chen Yongkang, Cai Zhichang, and Chen Shuwen, with 30%, 30%, 15%, 15%, and 10% equity respectively) has entered into a placing agreement with China Wealth Development Securities Limited (the placing agent) after trading hours on November 13, 2024. According to the agreement, the placing agent has agreed to use their best efforts to facilitate investors (subscribers) to purchase a maximum of 4.8 billion shares of the company held by the seller at a price of not less than HK$0.25 per share. The placing period will start from the date of the placing agreement and end at 4 pm on November 30, 2024, and shall be completed no later than June 30, 2025, or any other date agreed in writing by the seller and the placing agent. As of the announcement date, the 4.8 billion placing shares represent 24% of the company's existing issued share capital. After the completion of the placing and assuming all placing shares are subscribed by subscribers, the seller's shareholding will be reduced to 1.02 billion shares, representing 51% of the company's total issued share capital. Therefore, the seller will continue to be the controlling shareholder of the company.