LEEPORT (HOLD) (00387) entered into a shares redemption agreement with FEMTO S. r.l.

LEEPORT (HOLD) (00387) announced that on August 1, 2025, the Company's wholly-owned subsidiary, Weilin, entered into a share redemption agreement with the target company, FEMTO S. r.l. Weilin has conditionally agreed to sell, while the target company has conditionally agreed to redeem, the target shares held by Weilin (500,000 Class C shares of the target company, representing approximately 2.55% of the total issued share capital of the target company as of the announcement date), for a cash consideration of 7.5 million (equivalent to approximately HK$68.119 million). As of the announcement date, the target company indirectly fully owns Prima. The target company is a private limited company registered under Luxembourg law (Company Registration No.: B270139). As of the announcement date, the target company is primarily an investment holding company and fully owns Prima Industrie S.p.A. (Prima), a limited company registered in Italy and a major supplier of sheet metal machinery to the Group. Based on all reasonable inquiries made by the directors, they are aware, informed and believe that as of the announcement date, Alpha 7 indirectly owns 46.8% and Peninsula Investments indirectly owns 46.8% of the majority of the equity of the target company. The board of directors regularly assesses global economic outlook and reviews the Group's investment portfolio. Taking into consideration geopolitical tensions leading to global economic fluctuations, increased policy uncertainty and transaction costs, as well as the Group's current financial position, the directors believe that the share redemption presents an advantageous opportunity for the Group. Weilin acquired the target shares in February 2023 for 5 million. Through the sale of the target shares for 7.5 million, the Group will be able to realize the value appreciation it has gained over time. The share redemption will result in additional operational expenses for the Group, reduce the Company's liabilities and financial costs, and enable the Group to allocate more resources to other existing businesses. Upon completion, the Group's net debt-to-equity ratio is expected to decrease from approximately 21.7% as of December 31, 2024, to around 12.4%; and the net proceeds of approximately HK$447.63 million will be used for general operating funds, as detailed above, thereby reducing the need for bank borrowings. It is estimated that the financial costs for the second half of the financial year ending December 31, 2025, will decrease by approximately HK$938,000.