Dual-listed AMTD International has acquired a majority stake in AMTD Digital, bringing its original stake of 14.4% to 97.1%.
AMTD International, which is also known as AMTD IDEA Group, is listed on the New York Stock Exchange (NYSE) and the Singapore Exchange (SGX) and is a subsidiary of the AMTD Group.
AMTD Digital, a one-stop digital solutions platform in Asia, is also a subsidiary of the AMTD Group.
According to a bourse filing released in the wee hours of Jan 24, AMTD International will purchase a total of 31.7 million Class A ordinary shares and 24.2 million Class B ordinary shares at US$17.75 ($23.88) per AMTD Digital share. The move will value AMTD Digital at US$1.2 billion.
The total consideration represents 67.2 million newly issued Class A ordinary shares and 51.3 million newly issued Class B ordinary shares of the Company, priced at US$8.38 per AMTD International share, representing a pro-forma company valuation of AMTD International with enlarged shares at approximately US$2.64 billion.
The shares will be purchased from certain strategic and institutional shareholders of AMTD Digital and AMTD Group, as well as certain affiliates of AMTD Group and an affiliate of Dr. Calvin Choi, who is the chairman of AMTD Group.
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The acquisition will enable AMTD International to encompass a “comprehensive suite of financial services infrastructure and licences; a one-stop digital solutions’ platform in Asia with global reach, spanning digital media, contents and marketing”. This includes L’Officiel, which was acquired on Jan 20, in a bid to open space in the metaverse.
The transactions tabled under the share purchase agreements are “subject to certain closing conditions”, which were not revealed.
The share purchase agreements have been approved by AMTD International’s board of directors and audit committee.
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The acquisition is expected to close in early 2022, after which AMTD Digital will become a consolidated subsidiary of AMTD International.
Upon the completion of the transactions, Dr. Timothy Tong, chairman of the board of directors of AMTD Digital, will continue to serve as the chairman, as a subsidiary of AMTD IDEA Group. In addition, Tong will join the company’s board of directors as an independent director.
“This acquisition by AMTD International, which is listed on both the NYSE and SGX, will create synergistic opportunities under a broader umbrella and result in enhanced values for all stakeholders involved in the transaction,” says Tong.
“Since the listing of AMTD International on the NYSE in August 2019, we have seen the world greatly impacted by the still ongoing pandemic and the global financial markets coming under immense pressure. Changes and adaptation are implemented to the way we conduct business and manage operations, which are crucial to maintaining a sustainable business under the ‘new normal’,” says William Fung, AMTD International’s CEO.
“More importantly, digital innovation and transformation are becoming a necessity. The growth and application of FinTech are leading to many new business opportunities. The birth of AMTD IDEA Group by combining the already established AMTD International’s financial services capabilities and network, with AMTD Digital’s future-shaping ideas and tools is the natural next progressive phase, as we strive to continue to innovate and provide enhanced solutions to the ever-evolving needs of our clients,” he adds.
“We believe the acquisition is a highly strategic one and has served as another major milestone for AMTD, which creates significant value to both our company and relevant stakeholders, and establishes our most solid foundation to enter and navigate successfully in the Metaverse,” says Mark Lo, CEO of AMTD Digital.
Shares in AMTD International closed at $12.50 on Jan 24.
