AMTD Intl to acquire most of AMTD Digital, valuing it at US$1.2B

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Hong Kong-based financial services conglomerate AMTD International said Monday it has entered a deal to acquire a majority of AMTD Digital, in a deal which will value the target at US$1.2 billion.

AMTD Digital, currently a subsidiary of AMTD Group, is a digital services platform based in Asia.

“With the acquisition, AMTD International will encompass a comprehensive suite of financial services infrastructure and licences; a one-stop digital solutions’ platform in Asia with global reach, spanning digital media, contents and marketing, including L’Officiel Inc SAS being a global fashion media group, and digital ecosystems comprising of an extensive network of ecosystem members and alliance partners, all of them working closely and / or in partnership with AMTD Group to enter into the Metaverse and deliver our comprehensive one-stop solutions to encompass financial services, digital tools and channels, art, culture and entertainment areas etc.,” AMTD International said.

Last week, AMTD International entered a deal to acquire L’Officiel Inc., the holding company for 100-year-old French magazine L’Officiel and for a network of fashion and luxury media brands.

The company said the L’Officiel deal was aimed at expanding in the “Metaverse,” which is defined variously as a simulated digital environment, a virtual-reality space for users to interact with a computer-generated environment and other users, an iteration of the internet as a single world and/or as a merger of virtual, augmented and physical reality.

Currently, AMTD International owns 14.4 percent of AMTD Digital, and under the deal, it will acquire 31.73 million Class A shares and 24.20 million Class B shares from certain strategic and institutional shareholders and from AMTD Group and some of its affiliates, and from an affiliate of Calvin Choi, chairman of AMTD Group, the filing said.

The AMTD Digital shares will be priced at US$17.75 each, the filing said. A back-of-the-envelope calculation suggest a deal consideration of US$992.83 million.

The consideration will be 67.20 million new Class A shares of AMTD International and 51.25 million new Class B shares of AMTD International, priced at US$8.38 each, suggesting a pro forma valuation of US$2.64 billion for AMTD International once the deal is completed, the filing said.

Once the deal is completed, AMTD Digital will own 97.1 percent of AMTD Digital’s shares, the filing said.

Timothy Tong, chairman of AMTD Digital, will remain in his role after deal completion, the filing said.

Completion of the deal is expected in “early 2022,” the filing said.