Jun Yang Solar to acquire 20% stake in Asia Credit Monitors Enhanced the Group's money lending business portfolio to generate resources for its core solar power business
(Hong Kong, 1 December, 2013) - Jun Yang Solar Power Investments Limited ("Jun Yang Solar" or the "Group", SEHK: 397), announces today that the Group has signed a sales and purchase agreement to acquire 20% stake in Asia Credit Monitors (ACM), a leading delinquent accounts recovery service provider in Hong Kong, for a consideration of HKD40 million. The Group will pay in cash and the amount will be funded by the Group's internal resources and/or bank borrowings and/or fund raising exercise.
According to the agreement, ACM and the Guarantor guarantee that its audited yearly net operation profit in the coming four years will not be less than HKD 25 million, or shall refund the Group a sum in cash which is determined in accordance with the agreed formula.
The Directors are of the view that solar downstream power generation is the core business of the Group and major target of investment. The acquisition provides the Group with a good investment opportunity to broaden its investment portfolio, not only allowing the Group to step into the delinquent accounts recovery service in Hong Kong, but also creating a fully integrated value chain which covers money lending in Hong Kong and mainland, as well as the provision of account receivable management services. The move also serves as a back-up to the Group's money lending business and generates more resources for solar downstream power generation.
Commenced its delinquent accounts recovery service since 2000 and has an experienced management team with extensive management and operational experience from a diversity of background, ACM was the first debt collection agency in Hong Kong to obtain two internationally recognized certifications, namely ISO 27001 certification for its information security management system and ISO 10002 certification for its complaints management system from the British Standards Institution. Its customers included banks, credit card issuers/operator, finance companies, insurance companies, property agents, courier and logistics company, telecommunication company, distressed assets buyer and stock broker in Hong Kong.