Energys Group signs MOU to acquire 49% interest in Energys Spectrum

Energys Group (ENGS) has entered into a non-binding Memorandum of Understanding to acquire a 49% equity interest in Energys Spectrum, a Hong Kong-based energy-saving technologies and services provider. The Target Company specializes in providing end-to-end retrofitting solutions aimed at reducing energy consumption, carbon emissions, and operating costs for both public and private sector clients. As the exclusive licensee of Energys Group in Hong Kong and Macau, the Target Company actively promotes the Energys brand by procuring products and solutions from the Company’s wholly-owned operating subsidiary and recommending them to its clients. The MOU is non-binding and remains subject to the negotiation and execution of a definitive agreement and customary closing conditions. The consideration for the shares to be purchased by the Company will be determined with reference to the valuation of the shares as determined by a professional valuator to be engaged by the Company, and is subject to negotiation between the parties. Among other conditions, the acquisition of the shares is contingent on the Company and the Target Company having agreed on the purchase price for the shares; and the Company being satisfied with the results of its due diligence review of the Target Company’s financial position and business condition. The Company has paid a refundable deposit of $5.5M, which will be applied towards the purchase price of the shares, unless it is forfeited due to the Company not having fulfilled its obligations under the MOU. The MOU provides that the acquisition is to be consummated no later than December 31, 2025. Upon completion, the acquisition is expected to further strengthen the Company’s presence and competitiveness in the Hong Kong and Macau markets, while securing higher margins from product and solution sales to the Target Company.

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