Chan signed an agreement to acquire 59% stake in Kantone Holdings Limited (SEHK:1059) from Champion Technology Holdings Limited (SEHK:92) for HKD 59 million on May 31, 2021. Under the terms, Chan agreed to acquire 128.14 million shares of Kantone Holdings at HKD 0.461 per share. The Consideration payable in cash will be financed by the loan facility granted to it by Kingston Securities.

The Kantone Independent Board Committee has been formed to advise the Kantone Independent Shareholders. The transaction is subject to approval of stock exchange, shareholders of Champion Technology and Kantone Holdings. Guangdong Finance Limited to release the share charge on the shares upon receipt of HKD 59 million from Champion Technology.

The transaction is approved by Chan and Board of Directors of Champion Technology. The transaction is expected to close on October 15, 2021. The proceeds of sale and internal resources of the Champion Technology will be used to pay Guangdong Finance Limited Loan.

Kingston Corporate Finance acted as financial advisor to Chan. Donvex Capital Limited acted as financial advisor to Kantone Holdings.