LEEPORT (HOLD) entered into a share redemption agreement with FEMTO S.à r.l
LEEPORT (HOLD) signed a share redemption agreement with FEMTO S.à r.l, and Weilin agreed to sell its 500,000 Class C shares for €7.5 million, accounting for approximately 2.55% of the target company's equity. This transaction will reduce the company's liabilities and financial costs, with the net asset liability ratio expected to decrease from 21.7% to 12.4%. The proceeds will be used for general working capital to reduce the need for bank loans
According to the Zhitong Finance APP, LEEPORT (HOLD) (00387) announced that on August 1, 2025, its wholly-owned subsidiary Weilin entered into a share redemption agreement with the target company FEMTO S.à r.l. Weilin has conditionally agreed to sell, and the target company has conditionally agreed to redeem the target shares (500,000 Class C shares held by Weilin, which represent approximately 2.55% of the total issued share capital of the target company as of the date of this announcement), for a consideration of EUR 7.5 million (equivalent to approximately HKD 68.119 million). As of the date of this announcement, the target company is indirectly wholly owned by Prima.
The target company is a private limited company registered under Luxembourg law (Company Registration Number: B270139). As of the date of this announcement, the target company is essentially an investment holding company and wholly owns Prima Industrie S.p.A. (Prima, a limited company registered in Italy and the main supplier of sheet metal machinery for the Group). After making all reasonable inquiries, the directors are fully aware and confident that as of the date of this announcement, the majority of the interests in the target company are indirectly owned by Alpha 7 (46.8%) and Peninsula Investments (46.8%).
The board regularly assesses the global economic outlook and reviews the Group's investment portfolio. Considering the geopolitical tensions leading to global economic fluctuations, increased policy uncertainty, and rising transaction costs, as well as taking into account the Group's current financial situation, the directors believe that the share redemption can provide favorable opportunities for the Group.
Weilin acquired the target shares in February 2023 for EUR 5 million. By selling the target shares for EUR 7.5 million, the Group will be able to lock in the appreciation it has gained over time. The share redemption will bring additional operating expenses to the Group, reduce the Company's liabilities and financial costs, and allow the Group to allocate more resources to other existing businesses.
Upon completion, the Group's net asset liability ratio is expected to decrease from approximately 21.7% as of December 31, 2024, to approximately 12.4%; and the net proceeds of approximately HKD 44.763 million will be used as general working capital for the Group, thereby correspondingly reducing the demand for bank borrowings. The financial costs for the second half of the fiscal year ending December 31, 2025, are expected to decrease by approximately HKD 938,000
