KAM HING INT'L's subsidiary plans to acquire a company in Vietnam
KAM HING INT'L announced that its wholly-owned subsidiary Kam Fung (Hong Kong) Garment Co., Ltd. intends to acquire 100% of the shares of Vietnam Korea Textile & Dyeing Support Joint Stock Company for USD 4.348 million and settle debts of USD 6.4076 million. The target company focuses on textile product manufacturing and has well-established production facilities and resources. The acquisition will enhance the group's production capacity and efficiency in Southeast Asia, aligning with its business strategy
According to the announcement from KAM HING INT'L (02307), on January 27, 2025, the buyer (the company's indirect wholly-owned subsidiary, JinFeng (Hong Kong) Garment Co., Ltd.), the sellers, and the target company (Korea Textile & Dyeing Support Joint Stock Company) entered into a sale and purchase agreement, pursuant to which: (i) the sellers conditionally agreed to sell, and the buyer conditionally agreed to purchase the shares for a cash consideration of USD 4.348 million (representing all issued and fully paid shares of the target company); and (ii) the buyer agreed to settle debts of USD 6.4076 million.
The target company is primarily engaged in the production of textile products. Its assets include a plot of land located in the Renze Six Industrial Zone, with a total construction area of 27,253 square meters, which includes a dyeing factory and two weaving factories.
The target company is a well-established production and trading company with an existing production base in Vietnam, equipped with readily available resources, including factory facilities, machinery, and labor. As previously disclosed by the company, the existing available production base can immediately enhance the group's textile production capacity without significant capital investment. Upon completion, the operational capabilities of the target company's factory will bring synergies and improve efficiency for the group's existing operations and future business development in Southeast Asia. The acquisition also aligns with the group's business strategy, particularly in establishing a self-operated integrated textile and garment production base in Southeast Asia
