LONDON: Honye Financial Services Ltd (LSE: HOYE) announced Wednesday it has agreed to acquire London-based FinTech firm Zoyo Capital Limited in a share-based deal valued at £26 million.
Under conditional agreements, Honye will acquire the entire issued share capital of Zoyo. The consideration will be satisfied entirely through the issuance of 113,043,478 new Honye ordinary shares to Zoyo’s shareholders at a price of £0.23 per share.
Upon completion, these new shares will represent approximately 76% of Honye’s enlarged issued share capital. Completion is conditional on the admission of these shares to the Official List (Equity Shares – Transition category) maintained by the UK Financial Conduct Authority (FCA) and to trading on the London Stock Exchange’s Main Market (“Admission”).
Founded in 2018, Zoyo and its subsidiaries (“Zoyo Group”) focus on developing infrastructure for its branded app, aimed at enabling high-net-worth individuals to trade globally listed equities.
Following Admission, the combined entity (“Enlarged Group”) will focus on two core areas: developing and providing a “White Labelled” digital securities broking service via the Zoyo app for high-net-worth clients, and advancing research and development to support Zoyo’s application for its own FCA authorization. The goal is to replace the white-labelled service with Zoyo’s own fully operational app, targeted for launch in Q1 2027. The Enlarged Group also plans to generate revenue by licensing Zoyo’s KYC/AML onboarding technology to other businesses.
Separately, Honye confirmed that Weng Jianxiong has conditionally subscribed for 10,869,565 new Honye ordinary shares at £0.23 per share, raising £2.5 million (before expenses). These subscription shares will represent approximately 7.3% of the Enlarged Issued Share Capital. This subscription is also conditional upon Admission occurring by 8:00 a.m. on July 30, 2025.
Both the acquisition shares and subscription shares will rank equally with Honye’s existing ordinary shares. If Admission does not proceed, both the acquisition and the subscription will lapse, and subscription funds will be returned.
Concurrent with Admission, Honye announced board changes: Wei (Ivy) Wang and David Powell will join the board, while WanBao Xu will resign as a director.