Build King Holdings Ltd. (00240) plans to acquire several construction companies with a maximum total consideration of 100 million Hong Kong dollars.

BUILD KING HOLD (00240) announced that the boards of directors of PrimeStone and WTP have entered into a restructuring framework agreement on July 23, 2026. Under this agreement, PrimeStone, as an investor, has agreed to acquire approximately 100% interest in each target company for a maximum total consideration of HK$100 million, subject to the satisfaction of certain conditions. Upon completion, the target companies and investors or their nominees will only retain their licenses and the "Po Huah" trademark, and will no longer hold any other significant assets or liabilities. The target companies will become subsidiaries of WTP and will be consolidated in their financial statements. The target companies include Po Huah Construction, Po Huah Construction Works, Po Huah Construction Engineering, and Po Huah Electromechanical. The target companies hold various construction licenses, some of which have been revoked and are subject to removal as a condition precedent to completion. These licenses include third group licenses issued by the Development Bureau covering building, road and drainage works, site formation and water works (for Po Huah Construction and Po Huah Construction Works); third group (provisional) licenses issued by the Development Bureau covering port works and landslide prevention works (for Po Huah Construction and Po Huah Construction Engineering), as well as second group licenses for piling works (for Po Huah Construction and Po Huah Construction Engineering) and mechanical and electrical works (for Po Huah Electromechanical); licenses issued by the Buildings Department covering general building contractor works, foundation works, and site formation works, as well as NW2 and NW1 building (new works) licenses issued by the Housing Authority (for Po Huah Construction, Po Huah Construction Engineering, and Po Huah Construction Works). Investors have been informed that the rectification period for Housing Authority licenses may have expired. If any of these licenses for the target companies are revoked, invalidated, terminated or withdrawn, a renegotiation period will ensue. The sellers include PYC International, Victory Box, Everboom, Po Huah Construction and Po Huah Management, all of which are registered in the British Virgin Islands (except for Po Huah Construction and Po Huah Management, which are registered in Hong Kong), primarily engaged in investment holding. The completion of any target company will enable WTP Group to acquire the target company, thereby strengthening WTP Group's strategic and operational growth and enhancing its ability to bid for a wider range of projects (after the target companies are recapitalized and their licensed operations resume normal operations), and manage project-related risks and operational efficiency at a reasonable acquisition cost. In addition to licenses held by the target companies that are not currently held by WTP Group member companies, upon completion, if there are entities within the WTP Group that hold similar licenses, this can provide greater flexibility to (i) manage the risk of being unable to bid for new projects due to unforeseen accidents, even though WTP Group has implemented strict health and safety measures at its project sites, or (ii) allow entities within the WTP Group to bid for construction projects independently (whether subcontracted to others or in partnership with related entities or external parties) based on the relevant combination of licenses held.