Niche Holdings (00240) plans to acquire a number of construction companies at a maximum total cost of HK$100 million

According to Zhitong Finance App News, Niche Holdings (00240) issued an announcement. The respective boards of directors of Niche and Huiji announced that on July 23, 2026, PrimeStone (Niche's wholly-owned subsidiary) (as an investor) entered into a restructuring framework agreement with the target company, seller and provisional liquidator (as seller). Based on this, PrimeStone has agreed to acquire approximately 100% of each target company's interests. The maximum total cost is HK$100 million, but this will not be realized until the preconditions are met (if not exempted).

After completion, each target company and investor or its nominee will retain only its license and “Baohua” trademark, and will no longer hold any other real or significant assets and liabilities (if not covered by the plan, based on the indemnity guarantee provided by the target company as the beneficiary), and the target company will become a niche subsidiary and comprehensively recorded in its financial statements.

Target companies include Baohua Construction, Baohua Construction, Baohua Construction Engineering, and Baohua Electromechanical. The target company holds various types of construction licences (some have been revoked, but as a prerequisite for completion), including Group C licenses covering construction, roads and drainage, site preparation and water services issued by the Development Bureau (in the case of Baohua Construction and Baohua Construction); Group C (trial period) licenses covering port engineering, landslide prevention works (in the case of Baohua Construction and Baohua Construction Projects), and covering land piling works (in the case of Baohua Construction and Baohua Construction Projects) and electromechanical works (in the case of Baohua Mechatronics) Group II license; covers general building contractors issued by the Buildings Department Licences for engineering, foundation works and site preparation works, and NW2 and NW1 construction (new projects) licences issued by the Housing Authority (in the case of Baohua Construction, Baohua Construction Projects and Baohua Construction). Investors have learned that the Housing Authority's license rectification period may have expired. If any target company's license is revoked, invalidated, terminated or withdrawn, a renegotiation period will commence.

The sellers include PYC International, Victory Box, Everboom, Baohua Construction and Baohua Management. These companies were all incorporated in the British Virgin Islands (except Baohua Construction and Baohua Management, which were incorporated in Hong Kong) and are mainly engaged in investment holding.

The completion of any target company will enable Niche Group to acquire that target company, thereby strengthening Niche Group's strategic and operational growth, thereby enhancing Niche Group's ability to bid for a wider range of projects (after all relevant target companies recapitalize and resume normal operation), and manage the risks and operational efficiency associated with the project at reasonable acquisition costs. With the exception of such licences held by the target company and not currently held by Niche Group member companies, once the relevant implementation has been completed, if an entity within the niche group holds a similar license, it can provide greater flexibility to (i) manage the risk of not being able to bid for new projects due to unforeseen incidents, etc. (despite the fact that Niche Group has implemented strict health and safety measures at its project site) or (ii) (based on the relevant combination of licenses held) so that each relevant entity within the Niche Group can independently (whether or not subcontract to others) or form joint ventures with similar subsidiaries or external parties For construction projects Place a bid.