(Correcting that Sealand has started operations)

LONDON (Alliance News) – Sealand Capital Galaxy Ltd said on Wednesday it entered into a memorandum of understanding with some majority shareholders in order to buy a 51% stake in Guangzhou Ruiyou Information Technologies Co Ltd.

Sealand said the memorandum of understanding is to serve as a platform for further negotiations in connection to the proposed acquisition of Guangzhou Ruiyou, a Chinese mobile games developer.

Sealand is focused on businesses operating in the information technology and social media sector in the Asia Pacific region.

The company said the cooperation agreement between Guangzhou Ruiyou and Huawei Technologies Co Ltd signed in 2015 will remain valid and continue beyond the completion of the acquisition.

As part of this agreement, Guangzhou Ruiyou will list its mobile gaming contents on Huawei’s international platform, InTouch, in order for Guangzhou Ruiyou’s content to be distributed through Huawei’s oversea channels.

Sealand said due to Guangzhou Ruiyou’s “extensive geographical reach and diversified strategic partnerships”, the proposed acquisition is expected to expand Sealand’s market presence and enhance its competitiveness in the social media sector.

The acquisition is subject to approval and authorisation of relevant authorities in China, including Ministry of Commerce.

Sealand Chairman & Chief Financial Officer Nelson Law said: “Our strategy is to grow through acquisition and organically, within the social media and mobile industries. This potential deal represents an excellent opportunity for us to build upon an instantly recognisable brand across Asia Pacific and beyond, which we believe will steer an increase in traffic to our social networking platforms, Metalk and SecureChannel.

“We continue to look for new investments and acquisitions with high growth potential and, within the next three years, we hope to have a portfolio of businesses that are individually profitable and when combined, may yield exponential growth results through the synergies of business.”

Shares in Sealand closed down 22% on Wednesday at 4.50 pence.

Maryam Cockar; [email protected]; @MaryamCockar

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