Aqua Capital Strategy Limited Demonstrates Exceptional Transaction Execution Capabilities, Successfully Facilitating LSC Fund's Cross-Border Acquisition of "Hua Xia Wines"

William Lo
Aug 21, 2024
2 min read

(Hong Kong, 21 August 2024) – Aqua Capital Strategy Limited ("Aqua Capital" or the "Group") is pleased to announce today that, leveraging its profound professional expertise in cross-border financial structuring and asset allocation, the Group has successfully assisted LSC Stable Income LPF and its wholly-owned subsidiary, H2O Water Limited, in entering into an agreement with New Silkroad Holding Group Limited (Stock Code: 472.HK), a company listed on the Main Board of The Stock Exchange of Hong Kong Limited, to wholly acquire the entire issued share capital of its subsidiary, "Hua Xia Wine Holdings Limited" ("Hua Xia Wines").

The total consideration for this transaction is RMB 130 million (equivalent to approximately HK$142.4 million). The target company, Hua Xia Wines, is principally engaged in the production and distribution of high-quality wines in the PRC. This acquisition not only demonstrates the Group's capability to accurately capture asset allocation opportunities in a complex market environment but also reflects our core competitiveness in assisting clients to optimise their industrial footprint.

Acting as the investment manager of the LSC Fund, the Group has exhibited outstanding post-investment management and transaction execution capabilities in this cross-border acquisition. This serves as a strong testament to the Group's professional execution competence in a complex investment landscape, creating value for the investment portfolio through the following professional aspects:

Optimization of Valuation and Structuring: Facilitating the transaction under highly favorable terms that align with market-based valuation benchmarks through arm's length negotiations.
Cross-Border Resource Integration: Coordinating comprehensively with various professional parties spanning legal, compliance, and financial sectors to ensure the entire acquisition process strictly complies with the regulatory requirements for a "Major Transaction" under the Hong Kong Listing Rules.
Debt Restructuring Planning: Strategically arranging the repayment and waiver procedures for the debt payable by the disposal group (amounting to approximately RMB 172.6 million), thereby laying a solid foundation for the subsequent operation and value appreciation of the assets.

A spokesperson for Aqua Capital stated: "The Group is always committed to creating long-term value for a diversified investment portfolio. The successful facilitation of LSC Fund's acquisition of Hua Xia Wines once again highlights our investment philosophy of forward-looking strategic deployments. Looking ahead, we will continue to adhere to the principle of prudence and assist the LSC Fund in exploring further potential for value enhancement in related sectors, with a view to bringing sustainable and stable prospects for investors."

Attachment Notice:20240821 Hua Xia