KBS Fashion Group Limited Announces a Letter of Intent for a Proposed 51% Acquisition of Hangzhou Siteng Network Technology Company Ltd.
SHISHI, China, Sept. 20, 2018 /PRNewswire/ -- KBS Fashion Group Limited ("KBS" or the "Company") (NASDAQ: KBSF), a leading fully-integrated casual menswear company in China, announced that it has entered into a non-binding letter of intent to acquire 51% of Hangzhou Siteng Network Technology Company Ltd. ("Siteng"), an e-commerce services company based in China. KBS has agreed to acquire 51% of Siteng in cash; the consideration will be based on Siteng's value which will be determined by an independent appraisal firm acceptable to KBSF, Siteng, and Siteng's shareholders. The parties seek to complete the transaction no later than June 30, 2019.
Headquartered in Hangzhou, Siteng is engaged in providing operational services to more than 100 companies in Chinaincluding Amazon and Aliexpress. There are currently over 100 employees with the majority being well-trained cross-border e-commerce professionals. Siteng is led by seasoned executive members with many years of experience in e-commerce including working for Alibaba in the past.
Mr. Keyan Yan, Chief Executive Officer of the Company commented, "we are very excited to be working with Siteng and integrate its expertise in e-commerce operations. The acquisition, if consummated, will be another significant milestone in KBS's efforts to grow in the tough fashion industry environment. We believe that our established branding and market together with Siteng's resources will facilitate the success of this partnership."
The transaction remains subject to completion of due diligence reviews, customary definitive documentation, and approval by the respective KBS and Siteng boards of directors. As a result, there is no assurance that the transaction will be eventually consummated.
About KBS Fashion Group Limited
Headquartered in Shishi, China, KBS Fashion Group Limited, through its subsidiaries, is engaged in the business of designing, manufacturing, selling and distributing its own casual menswear brand, KBS, through a network of 38 KBS branded stores (as of June 30, 2018) and over a number of multi-brand stores. To learn more about the Company, please visit its corporate website at www.kbsfashion.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of KBS Fashion Group Limited, and its subsidiary companies. All statements, other than statements of historical fact included herein, are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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SOURCE KBS Fashion Group Limited