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Alpha Returns Group plc (ARGP)

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Thursday 07 August, 2014

Alpha Returns Group plc

Alpha Returns Group plc : Completion of JV Acqu...

Alpha Returns Group plc : Completion of JV Acquisition of MY Securities

Alpha Returns Group PLC
("Alpha Returns" or the "Company")

7 August 2014

Completion of Joint Venture acquisition of MY Securities Limited

The Board of Alpha Returns, the AIM traded investing company focusing on investments in high-growth Asian economies, is pleased to announce that its 30 per cent. owned joint-venture investment vehicle, Riche Bright Group Limited ("Riche Bright"), has today completed the acquisition of MY Securities Limited ("MY Securities"), a member firm of The Stock Exchange of Hong Kong Limited. As announced on 2 January 2014, the acquisition of MY Securities by Riche Bright had been subject to a number of conditions precedent, including approval from the Securities and Futures Commission of Hong Kong ("HKSFC") for it to be a substantial shareholder in MY Securities. HKSFC approvals have now been received in respect of both Riche Bright and Alpha Returns.

In its year ended 31 March 2014, MY Securities made an audited pre-tax loss of HK$554,000 (c. £42,000) (2013 profit HK$142,000) on revenue of HK$1,995,000 (c.£153,000) (2013: HK$3,097,000). Other revenues amounted to HK$2,187,000 (c. £167,000) (2013: HK$2,305,000). At 31 March 2014, it had net assets of HK$19,658,000 (c. £1,506,000) (2013: HK$21,612,000) and gross assets (excluding client cash balances) of HK$26,707,000 (c. £2,046,000). Net assets at completion amounted to HK$ 19,450,944 (c. £1,496,000), which amount has today been paid in cash by Riche Bright to the vendors of MY Securities.

Alpha Returns has an option to purchase up to an additional 40 per cent. interest in Riche Bright at HK$3,000,000 (currently approximately £230,000) per tranche of 10 per cent., payable in cash or, at the option of Miss Tong (the Company's joint venture partner), in shares in Alpha Returns to be  issued at a 50 per cent. discount to the closing market price on the exercise date of the option. The option is now exercisable at any time up to and including 30 June 2016.

Looking forward, the joint venture's strategy will focus on broadening MY Securities' coverage over time from a Hong Kong-based brokerage firm to cover international financial markets including London and New York.


For further information:

Alpha Returns Group plc  Christopher Neo
Executive Director
020 3286 6388
ZAI Corporate Finance Ltd (NOMAD) Peter Trevelyan-Clark/Ivy Wang 020 7060 2220
Peterhouse Corporate Finance (Broker)  Duncan Vasey/Lucy Williams 020 7220 9797

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Alpha Returns Group plc via Globenewswire


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