TIDMSCGL
RNS Number : 1725M
Sealand Capital Galaxy Limited
26 July 2017
This announcement contains inside information. Not for release,
publication or distribution, directly or indirectly, in whole or in
part in or into the United States or any jurisdiction other than
the United Kingdom and the Cayman Islands where to do so would
constitute a contravention of the relevant laws or regulations of
such jurisdiction. This announcement (and the information contained
herein) does not contain or constitute an offer to sell or the
solicitation of an offer to purchase, nor shall there be any sale
of securities in any jurisdiction where such offer, solicitation or
sale would constitute a contravention of the relevant laws or
regulations of such jurisdiction.
26 July 2017
SEALAND CAPITAL GALAXY LIMITED (LSE: SCGL)
("Sealand", "SCGL" or "the Company")
Memorandum of Understanding for the sale and purchase
of not less than 51% of the issued share capital of
Guangzhou Ruiyou Information Technologies Co., Ltd
("Rightyoo")
The board of directors of the Company is pleased to announce
that on 26 July 2017, the Company, as a potential purchaser,
entered into a non-legally binding memorandum of understanding (the
"MOU") with certain majority shareholders for the acquisition of
not les than 51% of of Rightyoo (the "Proposed Acquisition")
The MOU isintended to record the preliminary mutual
understanding between the parties and to serve as a platform for
further negotiations in connection with the Proposed Acquisition.
As at the date of this announcement no binding agreement has been
reached in connection with the Proposed Acquisition.
Rightyoo, is a PRC-incorporated mobile games developer and
distributor which has been active since 2015. It primarily develops
apps for the personalisation of user desktop and mobile devices, as
well as being a distributor and publisher of over 20 mobile gaming
apps for third party developers including Huawei Technologies Co.
Ltd ("Huawei").
Key points of the MOU:
-- Proposed acquisition of not less than 51% of issued share capital of "Rightyoo.
-- A cooperation agreement was entered between Rightyoo and
Huawei in 2015 ("Co-operation Agreement") and will remain valid and
continue beyond the completion of this Proposed Acquisition.
-- Under the terms of the Co-operation Agreement, Rightyoo will
list its mobile gaming contents on Huawei's international platform
"inTouch", with a view to distributing Rightyoo's content globally
through Huawei's established oversea channels.
-- inTouch operates in eight regional centers with over 70
carriers. Its global distribution network covers over 30 countries
in Latin America, Africa, Southeast Asia and the Middle East.
-- Supported by the strong global presence of inTouch, Rightyoo
is strategically positioned to introduce its products through a
well-established and far reaching distribution network.
-- In addition to being able to leverage on inTouch's global
distribution network, Rightyoo also has engaged in strategic
partnerships with over 60 content providers and 16
distributors.
-- In view of Rightyoo's extensive geographical reach and
diversified strategic partnerships, the Proposed Acquisition is
expected to expand the Company's market presence and enhance its
overall competitiveness in the social media sector, bringing with
it strong growth potential and momentum.
-- The Proposed Acquisition is subject to the approval and
authorization of relevant PRC authorities, including Ministry of
Commerce of the PRC (MOFCOM).
Huawei is one of the world's leading information and
communications technology groups, which reported revenues of
US$75.1 billion in 2016. The company operates in over 170
countries, serving over one-third of the world's population,
providing a vast range of computing and mobile devices, and
associated services.
Nelson Law, Chairman and CFO of Sealand, commented: "Our
strategy is to grow through acquisition and organically, within the
social media and mobile industries. This potential deal represents
an excellent opportunity for us to build upon an instantly
recognisable brand across APAC and beyond, which we believe will
steer an increase in traffic to our social networking platforms,
Metalk and SecureChannel.
"We continue to look for new investments and acquisitions with
high growth potential and, within the next three years, we hope to
have a portfolio of businesses that are individually profitable and
when combined, may yield exponential growth results through the
synergies of business."
General notice
As at the date of this announcement, the terms and conditions of
the Proposed Acquisition are still being negotiated and no legally
binding agreement has been entered into. Shareholders and potential
investors in the Company should note that the MOU may or may not
lead to the entering into of a definitive agreement and
transactions contemplated thereunder may or may not be consummated.
The Company wishes to emphasise that a non-legally binding
agreement in relation to the Proposed Acquisition has been entered
into by the Company as at the date of this announcement. As the
Proposed Acquisition may or may not proceed, shareholders and
investors are reminded to exercise caution when dealing in the
shares of the Company.
-ends-
Enquiries:
Sealand Capital Galaxy
Nicholas Lyth, Non-Executive Director 07769 906 686
Leander (Financial PR)
Christian Taylor-Wilkinson 07795 168 157
Notes to Editors:
-- Sealand Capital Galaxy Limited (LSE: SCGL) is engaged in the
investment and acquisition of IT and social media businesses in the
APAC region with high growth potential.
-- Further information on Sealand is available on its website http://www.scg-ltd.com/
Disclaimer
This announcement contains certain forward-looking statements.
These statements are made by the Company's directors in good faith
based on the information available to them up to the time of their
approval of this announcement but such statements should be treated
with caution due to inherent uncertainties, including both economic
and business factors, underlying such forward-looking information.
This announcement has been prepared solely to provide additional
information to shareholders to assess the Group's strategies and
the potential for those strategies to succeed. This announcement
should not be relied on by any other party or for any other
purpose.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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