TORONTO, Nov. 1, 2018 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), a Hong Kong based investment firm and a member of major Asian conglomerate, Sunwah Group, is pleased to announce that it has signed a Memorandum of Understanding ("MOU") to acquire a majority interest in HFL Limited, a Hong Kong based food and beverage company.
The MOU marks an initial step in the Company's new direction and business focus, which will include an emphasis on the food and beverage industry in line with Sunwah Group's strategic strengths.
"To take our business to the next level, Sunwah International is introducing various initiatives designed to focus our ongoing operations in the food and beverage industry," said Michael Choi, CEO of Sunwah International. "In particular, we are looking at opportunities in food distribution and restaurants where we can leverage the extensive expertise and relationship network of Sunwah Group, one of the biggest players in this space in Hong Kong."
Under the terms of the MOU, it is proposed that Sunwah International will acquire 51% interests of HFL Limited from three other investment companies. It is contemplated that the parties will now proceed to negotiate and enter into a definitive agreement. There is no assurance that a definitive agreement will be concluded, or if concluded, whether the transaction will close.
About Sunwah International Limited
Founded in 1990, and until recently, Sunwah International Limited (TSX: SWH) represented the financial services division of Sunwah Group, one of Asia's most prominent multi-national conglomerates. The Company's current primary investment interest, Hong Kong based Sunwah Kingsway Capital Holdings Limited, is listed on the Stock Exchange of Hong Kong under the stock code 00188. Sunwah Kingsway is licensed to provide a range of financial solutions in Hong Kong and abroad that include award-winning brokerage services and innovative corporate finance offerings.
As a result of the Company's recent reduction of its equity interest in Sunwah Kingsway Capital Holdings Limited, the Toronto Stock Exchange ("TSX") informed the Company in July 2018 that the TSX is reviewing whether the Company meets continued listing requirements. There is no assurance that the proposed acquisition of the food and beverage company and the Company's new business focus will permit it to meet continued listing requirements.
This press release contains "forward-looking statements" as defined under applicable Canadian securities laws. These statements include, but are not limited to, statements made concerning the Company's 2018 objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan" or "continue", or similar expressions suggesting future outcomes or events. Such forward- looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.
Except as required by applicable law, management and the board of directors of the Company (the "Board of Directors") undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Sunwah International Limited
For further information: Kristen Humphrey, Sunwah International Limited, (416) 888-2323, [email protected]