HK Stock Market Move | MAN WAH HLDGS(01999) rose nearly 5% and its subsidiary plans to acquire 100% equity of Gainline Recline Intermediate Corp.

MAN WAH HLDGS (01999) rose nearly 5%, as of the time of writing, it rose 4.77% to 4.61 Hong Kong dollars, with a turnover of 8.3886 million Hong Kong dollars. On the news front, MAN WAH HLDGS announced that its indirectly wholly-owned subsidiary, Man Wah USA Manufacturing, and the seller Gainline Recline Holdings, LLC entered into a purchase agreement on December 18, 2025. According to the agreement, Man Wah USA Manufacturing agreed to acquire and the seller agreed to sell the entire issued share capital of the target company, Gainline Recline Intermediate Corp., for a price of 32 million US dollars. At the same time as the delivery, the seller has delivered to the company a copy of a formal repayment letter signed by a US bank, which states that as of the delivery date, the total amount to be paid to settle all outstanding obligations under the target group's bank financing is 27.9939 million US dollars. After the delivery, Man Wah HLDGSs indirectly wholly-owned subsidiary, Man Wah Hong Kong Trading, has granted an interest-free loan of 26.6703 million US dollars to the target group to fully repay all obligations under the aforementioned bank financing. The remaining 1.3236 million US dollars will be repaid by the target group from available bank cash on the delivery date. Therefore, the group acquired the business of the target group for a total of approximately 58.7 million US dollars, including the target group debt to be settled at the time of delivery. The group believes that after the delivery, the target group will generate synergies with the group's business through the cross-selling opportunities brought by its furniture retail distribution network with over 1,000 active customers, as well as cost-saving opportunities in raw material procurement and manufacturing efficiency improvements.