Alpha Returns Group plc Conditionla Disposal

 
TIDMARGP 
 
   Alpha Returns Group plc 
 
   (the "Company" or "Alpha Returns") 
 
   2 November 2015 
 
   Conditional disposal of Riche Bright Securities Limited ("RB 
Securities") 
 
   Alpha Returns, the AIM traded investing company focussing on investments 
in high-growth Asian economies, is pleased to announce the conditional 
sale by its 70 per cent. owned joint-venture investment vehicle Riche 
Bright Group Limited ("Riche Bright") of  RB Securities, a member firm 
of the Stock Exchange of Hong Kong Limited (formerly M Y Securities 
Limited) under an agreement dated 30 October 2015. Consideration, 
payable in cash, comprises HK$11 million (GBP0.92 million) plus net 
assets at 31 October 2015. As at 30 September 2015, unaudited net assets 
of RB Securities amounted to approximately HK$22.9 million (GBP1.92 
million). 
 
   The disposal is subject to a nine business day due diligence period by 
the purchaser and is further subject to conditions precedent that the 
purchaser, Hong Kong incorporated Hzone Holdings Limited, (or its 
nominee) obtains approval from the Hong Kong Securities and Futures 
Commission ("HKSFC") to become a substantial shareholder of RB 
Securities and no breach of warranty prior to Completion.  Consideration 
of HK$4 million has been paid, HK$24 million is due within 7 business 
days of the HKSFC approval with any balance being paid on Completion. 
Consideration, which is capped at HK$36 million, is subject to downwards 
adjustment to the extent that the operating expenses of RB Securities 
exceed HK$400,000 per calendar month from 1 November 2015 until 
Completion. A long stop date of 30 April 2016 has been agreed for 
satisfaction of the conditions precedent. Should the disposal not 
complete, monies received are liable to be returned without interest, 
save where a) HKSFC approval is not obtained for reasons not 
attributable to Riche Bright in which event the HK$4 million is retained 
by Riche Bright or b) Riche Bright fails to complete for reasons 
attributable to itself in which event an additional payment of HK$4m is 
due from Riche Bright to the purchaser in addition to the return of the 
HK$4 million received to date. 
 
   During its year ended 31 March 2015, RB Securities made pretax profits 
of HK$5.356m (2014: losses HK$ 0.554m) on commission fee income of 
HK$12.450m (2014: HK$1.995m) and a profit after tax of HK$4.916m (2014: 
losses HK$ 0.554m). Commission fee income included HK$8.597m (2014: Nil) 
with the Company's substantial shareholder Sze Thye Group Limited ("Sze 
Thye"). In the six months ended 30 September 2015, RB Securities made 
unaudited pretax losses of HK$0.63m and there has been no commission fee 
income from Sze Thye since 31 March 2015. 
 
   On completion of the disposal, it is intended that the net assets of 
Riche Bright, which will predominantly consist of cash proceeds from the 
RB Securities disposal be returned to its members, including 70 per cent 
to Alpha Returns to be applied in accordance with the Company's 
investing policy. The Company continues to hold its 52.5% interest in 
Singapore based IT service solutions provider Telistar Solutions Pte Ltd, 
a conditional 30% investment in Oriental Ventures Limited/Shenzhen 
MaxLife Catering Management Co., Ltd., a PRC coffee chain business which 
remains subject to a number of preconditions, and a conditional 50% 
investment in Jesoft International Limited/Jesoft Computer Technology 
Co. Ltd., a PRC corporate IT solutions provider. 
 
   For further information: 
 
 
 
 
                                Christopher Neo 
Alpha Returns Group plc          Executive Director              020 3286 6388 
ZAI Corporate Finance Ltd       Peter Trevelyan-Clark / Ivy 
 (NOMAD)                         Wang                            020 7060 2220 
Peterhouse Corporate Finance 
 (Broker)                       Duncan Vasey / Lucy Williams     020 7220 9797 
 
 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Alpha Returns Group plc via Globenewswire 
 
   HUG#1963346 
 
 
  http://www.alpharet.com 
 

(END) Dow Jones Newswires

November 02, 2015 09:59 ET (14:59 GMT)

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