EPS Holdings, Inc. (TSE:4282) made a mandatory offer to acquire remaining 25% stake in Speed Apparel Holding Limited (SEHK:3860) for approximately HKD 120 million on April 26, 2021. Under the transaction, EPS will acquire remaining 125 million shares in Speed Apparel at a price of HKD 0.988 per share in cash. In a related transaction, EPS acquired a 75% stake in Speed Apparel from Speed Development for approximately HKD 370 million on April 26, 2021. EPS intends to finance the total consideration payable under the offer through its own resources. EPS has no intention to introduce major changes to the existing business of Speed Apparel and intends that existing principal activities will be maintained. The board of Speed Apparel proposes to change the name from “Speed Apparel Holding Limited” to “EPS Creative Health Technology Group Limited”. EPS intends the issued shares of Speed Apparel to remain listed on the Main Board after the close of the offer.

The executive Director of Speed Apparel, Ng Ming Ho and independent non-executive Directors, Chan Siu Lai, Kwok Chi Shing and Ma Kwok Fai, Edwin have tendered their resignation from their respective position and the resignation will take effect from the earliest time permissible under Rule 7 of the Takeovers Code, being the date of close of the offer or June 30, 2021, whichever is later. EPS has no intention to discontinue the employment of any employees of Speed Apparel or redeploy the fixed assets of Speed Apparel other than those in its ordinary and usual course of business. The Independent Board Committee comprising all the independent non-executive Directors namely Chan Siu Lai, Kwok Chi Shing and Ma Kwok Fai, Edwin has been established to advise the independent shareholders as to whether the offer is fair and reasonable and as to its acceptance.

The proposed change of Speed Apparel's company name is subject to the passing of a special resolution by the shareholders of Speed Apparel at the EGM of approving the proposed change of company name and the Registrar of Companies in the Cayman Islands approving the proposed change of company name. The offer will be unconditional in all respects. On May 26, 2021, the tender offer for Speed ??Apparel started and will end on June 16, 2021. ZHONGHUI ANDA CPA Limited acted as accountant and Red Sun Capital Limited acted as financial advisor to Speed Apparel. Merdeka Corporate Finance Limited acted as financial advisor to EPS.