KUALA LUMPUR: Golden Destinations Group Bhd is expanding its footprint to Hong Kong through a share sale and purchase agreement to secure a 70 per cent stake in Double Happiness Holidays Ltd.
Its total proposed investment of HK$700,000 (about RM364,600) includes acquiring 200,000 existing shares from Chong Ching Lee for HK$200,000 and subscribing to 500,000 new shares in Double Happiness for HK$500,000.
The subscription will inject fresh capital to support the Hong Kong business's development and growth.
Upon completion of the acquisition, Yung Sing Wah and Chong will retain 20 per cent and 10 per cent respectively.
Yung will be appointed to the board of Double Happiness as executive director and will spearhead its Hong Kong operations and business development.
The investment marks the company's entry into Hong Kong's outbound travel market, creating new opportunities to extend its established business-to-business (B2B) travel model and reach a broader regional customer base.
Incorporated on Jan 27 this year, Double Happiness holds a travel agent licence issued by the Travel Industry Authority of Hong Kong, providing Golden Destinations with a licensed platform to establish its presence in the market.
The approval of the proposed change in ownership and control on Sept 28 marks a key regulatory milestone towards the company's planned commencement of operations.
Upon completion of the investment, Double Happiness is proposed to be renamed Golden Destinations (HK) Ltd, reflecting its expansion into the Hong Kong market.
Golden Destinations managing director Mita Lim said Hong Kong represents an exciting next step in its regional growth journey.
"Its established outbound travel market presents significant opportunities for us to bring our extensive travel portfolio, established B2B model and strong supplier network to a wider market.
"Building on our experience in Malaysia, we see meaningful potential to strengthen our regional reach and create value for travel agent partners in Hong Kong," said Lim.
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