Success Dragon signs MOU to buy Chinese energy companies

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Gaming service provider Success Dragon International Holdings Ltd announced last Friday that it has entered into a non-legally binding memorandum of understanding to acquire a group of companies engaged in the energy business in Mainland China.
The company, however, did not reveal the name of the possible vendor, or those of the group of targeted companies in the filing, only saying that the vendor is an independent third party of the company and its connected persons.
According to the filing, the targeted group of companies have entered into energy supply co-operation agreements with a number of Chinese enterprises, such as Changsha Guidao Traffic Group Company Ltd, Tianjin CSR Wind Electricity Vane Engineering Co., Ltd. and Zhenjiang Chimei Chemical Co., Ltd.
The MOU will last for a period of six months, while the company said the consideration for the proposed deal will ‘be satisfied by an issuance of new shares in the company at an issue price to be determined between the parties’.
Success Dragon primarily operates electronic gaming equipment management in the MSAR, as well as providing management services for the greyhound racing business in Vietnam.
For the first half of its fiscal year ended September 30, 2016, the company posted a net loss of HK$30.2 million (US$3.8 million), an improvement of 78.5 per cent from the HK$140.3 million loss for the same period of 2015.