Labixiaoxin Snacks to Acquire Target Firm via HK$188.5 Million Share-and-Bond Deal

Labixiaoxin Snacks Group Ltd. ( (HK:1262) ) has issued an update.

Labixiaoxin Snacks Group Limited has agreed to acquire an unnamed target company for HK$188.48 million, to be paid through the issuance of 20,834,480 new consideration shares and a convertible bond to be issued within five business days after completion. The new consideration shares will account for about 9.54% of the company’s existing share capital (7.95% after full dilution with conversion shares), while full conversion of the bond at HK$4.62 per share would result in 22,848,218 new shares, or 10.46% of current issued capital, all to be issued under the company’s general mandate and subject to listing approval. The deal qualifies as a discloseable transaction under Hong Kong listing rules, triggering reporting and announcement obligations but not requiring shareholder approval, and will modestly dilute existing shareholders while expanding the group’s asset base and potentially its strategic footprint through the acquisition.

The most recent analyst rating on (HK:1262) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Labixiaoxin Snacks Group Ltd. stock, see the HK:1262 Stock Forecast page.

More about Labixiaoxin Snacks Group Ltd.

Labixiaoxin Snacks Group Limited is a Hong Kong-listed company incorporated in Bermuda that operates in the snack foods sector, focusing on the production and sale of leisure snack products to consumers in its core markets.

Average Trading Volume: 133,647

Technical Sentiment Signal: Buy

Current Market Cap: HK$972M

For an in-depth examination of 1262 stock, go to TipRanks’ Overview page.