LONDON (Alliance News) - Investment company Alpha Returns PLC said Tuesday that it has exercised a put option to buy a further 10% interest in Riche Bright Group Ltd, and in turn increasing its indirect holding in MY Securities Ltd to 70%.
Riche Bright Group is Alpha Returns' joint-venture investment vehicle, which owns 100% of MY Securities Ltd. It has paid HKD3 million through the issue of 13.0 million new shares at a price of 1.925 pence per share, about GBP250,000 in total, for the additional 10% interest in Riche.
Shares in Alpha Returns are trading down 1.3% at 3.80 pence Tuesday afternoon.
This brings the total consideration Alpha Returns has paid for the 70% interest in the Hong Kong-based stock broker to GBP2.4 million.
In the year to end-March 2014, MY Securities posted a pretax loss of HKD554,000 on commission revenue of HKD2.0 million. Trading in the company has "significantly improved" since then, with commission revenue up over 250% in the nine months to end-December 2014.
"Since its acquisition by Riche Bright, MY Securities has experienced strong performance as commission income grew along with an increased customer base," said Executive Director of Alpha Returns Christopher Neo in a statement. "We are therefore confident that the recent strong performance of MY Securities will continue for the full year and beyond."
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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