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Energys Group Signs Memorandum of Understanding to Acquire 49% Interest in Energy Services Company Operating in Hong Kong

1. ENGS plans to acquire 49% of Energys Spectrum Limited. 2. Acquisition may strengthen ENGS's market presence in Hong Kong and Macau. 3. A refundable deposit of $5.5 million has been paid for the shares. 4. Completion expected by December 31, 2025, contingent on due diligence. 5. Acquisition aims to increase product adoption and profitability.

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FAQ

Why Bullish?

The acquisition can enhance market competitiveness and revenue streams, similar to past successful expansions in the energy sector that led to stock price increases.

How important is it?

The acquisition represents a substantial strategic move indicating growth potential and market expansion, likely impacting shareholder value positively.

Why Long Term?

The strategic acquisition's full benefits will unfold over time, reminiscent of ENGS's previous growth initiatives that paid off after several quarters.

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SPOTNEEVWS
BILLINGSHURST, WEST SUSSEX, UNITED KINGDOM, April 09, 2025 (GLOBE NEWSWIRE) -- Energys Group Limited (NASDAQ: ENGS) (“Energys Group” or the “Company”), a vertically integrated energy efficiency and decarbonization solutions provider for the built environment, today announced that it has entered into a non-binding Memorandum of Understanding (MOU) to acquire a 49% equity interest in Energys Spectrum Limited (the “Target Company”), a Hong Kong-based energy-saving technologies and services provider. The Target Company specializes in providing end-to-end retrofitting solutions aimed at reducing energy consumption, carbon emissions, and operating costs for both public and private sector clients. As the exclusive licensee of Energys Group in Hong Kong and Macau, the Target Company actively promotes the Energys brand by procuring products and solutions from the Company’s wholly-owned operating subsidiary and recommending them to its clients. The MOU is non-binding and remains subject to the negotiation and execution of a definitive agreement and customary closing conditions. The consideration for the shares to be purchased by the Company will be determined with reference to the valuation of the shares as determined by a professional valuator to be engaged by the Company, and is subject to negotiation between the parties. Among other conditions, the acquisition of the shares is contingent on (i) the Company and the Target Company having agreed on the purchase price for the shares; and (ii) the Company being satisfied with the results of its due diligence review of the Target Company’s financial position and business condition. The Company has paid a refundable deposit of US$5.5 million, which will be applied towards the purchase price of the shares, unless it is forfeited due to the Company not having fulfilled its obligations under the MOU. The MOU provides that the acquisition is to be consummated no later than December 31, 2025. Upon completion, the acquisition is expected to further strengthen the Company’s presence and competitiveness in the Hong Kong and Macau markets, while securing higher margins from product and solution sales to the Target Company. Michael Lau, Executive Director and Chief Technology Officer of Energys Group Limited, commented, “We are delighted to have reached an MOU with our key partner in Hong Kong. If the acquisition is completed, it is expected to further strengthen Energys’ brand profile in the regional market. It is also expected to generate a financial return through increasing product adoption and expanding margins as a result of value chain consolidation and streamlined operations. We hope that this will be the first of many acquisitions, and we will continue to accelerate regional decarbonization efforts while driving shareholders’ return.” About Energys Group Founded in 1998 as an energy conservation consultancy, Energys Group has since transitioned into a vertically integrated energy efficiency and decarbonization solutions provider for the built environment. Serving organizations from both the private and public sectors, including schools, universities, hospitals, and offices, primarily in the UK, the Company’s vision is to deliver innovative solutions that reduce carbon emissions, lower costs, and support the Net Zero agenda – alongside improving the wellbeing of building users within the built environment. Forward-Looking Statements All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC. For more information, please contact:DLK AdvisoryPhone: +852-2857-7101Email: ir@dlkadvisory.com

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