HONG
KONG, Sept. 11, 2024 /PRNewswire/ -- iClick
Interactive Asia Group Limited ("iClick" or the "Company") (NASDAQ:
ICLK), a leading enterprise and marketing cloud platform in
China that empowers worldwide
brands with full-stack consumer lifecycle solutions, today
announced the execution of a definitive agreement (the
"Agreement") to sell its demand side marketing solutions
business in mainland China to
SiAct Inc. at a consideration of RMB1
million or equivalents in US dollars (the
"Disposal").
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The Disposal aligns with the Company's ongoing strategic
scale-down of lower-margin and higher-risk businesses in its
marketing solutions segment, and the Company's
strategy of optimizing its operations and realigning
its business focus to meet market
trends. The uncertainties around the macro-economic
conditions since the COVID-19 pandemic led to a
broad-based slowdown in the advertising market in mainland
China. In addition,
the uncertainty in macro-economic environment with ongoing
influences on market sentiment, advertising spending and
promotional activities affect the profitability and cash flows of
this cash intensive business segment. The Disposal will enable the
Company to concentrate resources on its service offerings with
higher margins, greater operational efficiency and flexibility,
and balanced risks. The Company believes the
Disposal will generate greater and lasting shareholder value,
and the Company will continue to explore strategic
opportunities for broader business growth. After the Disposal,
the Company will continue to operate its supply side marketing
solutions in mainland China, as
well as marketing solutions and enterprise solutions
business in Hong Kong and
overseas.
To support the ongoing business operation of the disposed
business, prior to the closing of the Disposal, the Company shall
provide a loan to the disposed business in a principal amount of
RMB20 million with a term of six
months (which may be extended by the disposed business for up to 12
months) to support their ongoing business operations during the
transition period. The loan would be secured by the accounts
receivables of the disposed business. In addition, the Company has
agreed to repay the outstanding principal of the loans previously
extended by three banks to the
disposed business, totaling approximately US$35.0 million, within six months
following the execution of the Agreement.
For more details of the Disposal, please refer to Exhibit 99.2
of the current report on Form 6-K dated September 11, 2024 for the complete text of the
Agreement.
The board of directors of the Company received a fairness
opinion from an independent financial advisor, Houlihan Lokey
(China) Limited, as to whether, as
of the date of the Agreement, the consideration to be received by
the Company in the Disposal pursuant to the Agreement is fair to
the Company from a financial point of view. The audit committee and
the board of directors of the Company have approved the Agreement,
the Disposal and the other transactions thereunder.
The Disposal is conditioned upon receiving approval from
Company's shareholders. The Company will convene an annual general
meeting of the shareholders on September 30,
2024 to consider and approve the Disposal.
The closing of the Disposal is not certain. There is no
assurance that all conditions precedent to the closing of the
Disposal will be satisfied or waived. Either party may terminate
the Agreement if the closing of the Disposal has not taken place
within 90 days following the execution of the Agreement, or the
Disposal can be terminated by mutual written consent of the Company
and SiAct Inc..
About iClick Interactive Asia Group Limited
Founded in 2009, iClick Interactive Asia Group Limited (NASDAQ:
ICLK) is a leading enterprise and marketing cloud platform in
China. iClick's mission is to
empower worldwide brands to unlock the enormous market potential of
smart retail. With its leading proprietary technologies, iClick's
full suite of data-driven solutions helps brands drive significant
business growth and profitability throughout the full consumer
lifecycle. For more information, please visit ir.i-click.com.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Such statements
are based upon management's current expectations and current market
and operating conditions and relate to events that involve known or
unknown risks, uncertainties and other factors, all of which are
difficult to predict and many of which are beyond the Company's
control. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following:
uncertainties as to how the Company's shareholders will vote at the
meeting of shareholders, and the possibility that various closing
conditions for the transaction may not be satisfied or waived.
Further information regarding these and other risks, uncertainties
or factors is included in the Company's filings with the SEC. All
information provided in this press release is current as of the
date of this press release, and the Company undertakes no
obligation to update any forward-looking statement, except as
required under applicable law.
For investor and
media inquiries, please contact:
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In
China:
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In the United
States:
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iClick Interactive
Asia Group Limited
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Core
IR
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Catherine
Chau
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Tom Caden
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Phone: +852 3700
9100
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Phone:
+1-516-222-2560
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E-mail:
ir@i-click.com
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E-mail:
tomc@coreir.com
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SOURCE iClick Interactive Asia Group Limited