Meta-Wisdom Tech Acquires 74.02% of HOME CONTROL for 2.3 Billion HKD

On June 24, a notable transaction involving HOME CONTROL (01747) was recorded. Shareholders of HOME CONTROL transferred their shares from Yuanta Securities Hong Kong to Emperor Securities Hong Kong, with the total market value of the transfer amounting to 3.83 billion Hong Kong dollars, representing 74.02% of the total shares.

In conjunction with this transfer, HOME CONTROL and the acquiring entity, Meta-Wisdom Tech Limited, jointly announced that on the same date, Meta-Wisdom Tech Limited, as the buyer, and the seller, as the seller, entered into a purchase agreement. Under this agreement, Meta-Wisdom Tech Limited conditionally agreed to purchase, and the seller conditionally agreed to sell, 375 million shares, which constitutes approximately 74.02% of the total issued shares as of the announcement date.

The total consideration for the sale of the shares is 2.3 billion Hong Kong dollars, equivalent to approximately 0.6133 Hong Kong dollars per share. However, there is a potential adjustment to the consideration: if the seller receives the 2024 year-end dividend from the company after the settlement, the seller must pay an amount equal to the received 2024 year-end dividend to Meta-Wisdom Tech Limited. The transaction price was determined through fair negotiations between Meta-Wisdom Tech Limited and the seller, taking into account various factors, including the historical market price of the shares and the company's listing status.

The settlement of the transaction was completed on June 24. This transfer and subsequent acquisition highlight a strategic move by Meta-Wisdom Tech Limited to consolidate its stake in HOME CONTROL, potentially signaling a significant shift in the company's ownership structure and future strategic direction. The transaction underscores the importance of shareholder movements and their impact on corporate governance and market dynamics.