Swiss investment firm Youngtimers AG (SWX:YTME) announced that it has entered into early-stage discussions with Chinese merchant enablement company JHD Technologies Limited about a potential merger as the Swiss firm is seeking to strengthen its cross-border merger and acquisition (M&A) business. The potential deal envisages the merger of JHD into Youngtimers in exchange for existing and new shares of the Swiss firm. The transaction would result in a significant change of control over Youngtimers AG, whose shares would be expected to remain listed on SIX Swiss Exchange.

The two companies have set preliminary terms of the deal in a non-binding term sheet. Any definite terms are subject to further negotiations, the entry into binding agreements and other conditions. The potential transaction is in line with Youngtimers recently announced plan to assist high-growth Chinese companies with access to the international capital markets through Swiss financial infrastructure.

JHD Technologies owns and operates a payment and distribution services platform, allowing independent stores and financial institutions to reach more customers in lower-tier cities and rural areas of China. Headquartered in Basel, Youngtimers is an investment company focused on the European media, ecommerce and lifestyle goods sectors.