Prestige Wealth Inc. Finalizes Acquisition of Tokyo Bay
Deal News | Nov 12, 2024 | Globenewswire
Prestige Wealth Inc., a prominent Hong Kong-based wealth and asset management provider, has announced the acquisition of Tokyo Bay Management Inc., headquartered in Tokyo, Japan. The agreement, finalized on November 12, 2024, stipulates a purchase price of $1.5 million in the form of 2.5 million newly issued Class B shares of Prestige Wealth, priced at $0.60 each. The deal, which awaits customary closing adjustments, also provides seller entities with warrants to buy 1.875 million Class A shares at $0.72 each, becoming exercisable six months post-issuance. Post-acquisition, key Tokyo Bay employees will remain, underlining a non-competition and non-solicitation clause lasting three years. This acquisition, targeted to complete in Q4 2024, aims to bolster Prestige Wealth's strategy in Asia’s wealth management landscape. The takeover will terminate an existing business development agreement between the two companies, highlighting Prestige Wealth’s proactive approach to consolidating its market position across Asia. This strategic acquisition furthers Prestige Wealth's mission to enhance its services by leveraging Tokyo Bay's client base and expertise in high-net-worth portfolio management, family affairs, and lifestyle services specific to the Japanese market.
Sectors
- Wealth Management
- Asset Management
Geography
- Hong Kong – Prestige Wealth Inc. is based in Hong Kong, making it central to their operations and strategic market region.
- Japan – Tokyo Bay is based in Tokyo, Japan, which impacts the client base and market expansion strategy for Prestige Wealth Inc.
- British Virgin Islands – Tokyo Bay is incorporated under the laws of the British Virgin Islands, showing the international aspect of the transaction.
Industry
- Wealth Management – Both Prestige Wealth Inc. and Tokyo Bay operate in the wealth management industry, providing services to high-net-worth and ultra-high-net-worth clients.
- Asset Management – Prestige Wealth Inc. provides asset management services including investment funds and discretionary account management in the Asia market.
Financials
- $1,500,000 – Total purchase price for the acquisition of Tokyo Bay by Prestige Wealth Inc.
- 2,500,000 shares at $0.60 per share – Newly issued Class B shares given to Tokyo Bay sellers and key employees as part of the purchase consideration.
- 1,875,000 warrants at $0.72 per share – Warrants provided to seller parties, exercisable from the six-month anniversary of issuance.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Prestige Wealth Inc. | Buyer | Company | Prestige Wealth Inc. is a Hong Kong-based wealth management and asset management services provider focusing on high-net-worth clients in Asia. |
| Tokyo Bay Management Inc. | Target Company | Company | Tokyo Bay provides wealth management, family affairs, and lifestyle management services, primarily targeting high-net-worth clients in Japan. |