Core Viewpoint - iClick Interactive Asia Group Limited has executed a definitive agreement to sell its demand side marketing solutions business in mainland China to SiAct Inc. for RMB1 million, aligning with its strategy to scale down lower-margin and higher-risk businesses in the marketing solutions segment [1][2]. Group 1: Strategic Rationale - The disposal is part of the company's ongoing strategy to optimize operations and realign business focus in response to market trends and uncertainties in the macro-economic environment since the COVID-19 pandemic [2]. - The advertising market in mainland China has experienced a broad-based slowdown, impacting profitability and cash flows in the cash-intensive marketing solutions segment [2]. - The company aims to concentrate resources on higher-margin service offerings, enhancing operational efficiency and balancing risks, which is expected to generate greater and lasting shareholder value [2]. Group 2: Financial Arrangements - Prior to the closing of the disposal, the company will provide a loan of RMB20 million to the disposed business to support ongoing operations during the transition period, which may be extended for up to 12 months [3]. - The company has also agreed to repay approximately US$35 million in outstanding loans previously extended by three banks to the disposed business within six months following the execution of the agreement [3]. Group 3: Approval and Conditions - The disposal is subject to approval from the company's shareholders, with a meeting scheduled for September 30, 2024, to consider and approve the transaction [4]. - The closing of the disposal is not guaranteed, as conditions precedent must be satisfied or waived, and either party may terminate the agreement if the closing does not occur within 90 days [5].
iClick Interactive Asia Group Limited Announces Execution of Definitive Agreement for Disposal of Its Demand Side Marketing Solutions Business in Mainland China