HiTech Submits Proposal for Acquisition of Business

• HiTech Group proposes to acquire assets from Hudson Global Resources
• Total consideration up to $15 million
• Proposal subject to creditor approval and regulatory conditions
• Potential impact on employment and service quality

HiTech Group Australia Limited (ASX: HIT) has submitted a proposal to acquire certain assets from Hudson Global Resources (Aust) Pty Limited (HGR). The proposal involves acquiring selected assets and employees for a total consideration of up to $15 million. This includes an upfront $4 million payment, $6 million upon due diligence, and up to $5 million in deferred consideration. The proposal is subject to creditor approval, regulatory conditions, and obtaining necessary approvals from the ACCC. The acquisition aims to maximize shareholder value and ensure continuity in service quality.

HiTech Group plans to fund the acquisition with a mixture of debt and equity.

HiTech Group remains committed to its growth strategies and is positive about its standalone growth outlook.