Hong Kong DL Holdings Fully Acquires Remaining 55% Shares of $2.3 Billion DL Family Office for $28 Million at $51 Million Valuation, Acquired 45% of DL Family Office in January 2023 with Net Profit of $2.5 Million in 2022
21st September 2023 | Hong Kong
Hong Kong DL Holdings has fully acquired the remaining 55% shares of DL Family Office ($2.3 billion AUM, Assets under Management) for $28 million (HKD 220 million) at $51 million valuation, having acquired 45% of DL Family Office in January 2023 which reported net profit of $2.5 million in 2022 (HKD 20 million, excludes financial costs & tax). DL Holdings: “This strategic move follows the successful acquisition of a 45% stake earlier this year, establishing DL Family Office as a wholly-owned subsidiary of DL Holdings. Consequently, DL Holdings has emerged as the foremost asset management and financial services platform in Hong Kong, with a primary focus on multi-family office services. The consideration for this acquisition, totaling HK$220 million, will be settled through a combination of cash and promissory notes, comprising HK$70 million in cash and HK$150 million in promissory notes. Importantly, this financial arrangement will not encumber DL Holdings with any cash flow constraints, ensuring the company’s continued financial strength and stability … … Throughout this year, DL Holdings Group has embarked on a series of strategic initiatives. In May, the company formalized a strategic cooperation agreement with Soochow Securities (Hong Kong). In August, DL Holdings announced its investment in and acquisition of a new integrated commercial tower in Central, subsequently named “DL Tower.” Most recently, the company established the “DL Institute for New Economic Research.” In the midst of prevailing global economic uncertainties, DL Holdings remains proactive, adhering to the ethos of “seizing every crisis opportunity, maintaining sensitivity and vigilance.” Rooted in a long-term perspective, DL Holdings continues to explore new avenues for investment, mergers, acquisitions, and strategic collaborations on a global scale. The company is dedicated to establishing a premier asset management platform that delivers top-tier services to its family clients.”
“ Hong Kong DL Holdings Fully Acquires Remaining 55% Shares of $2.3 Billion DL Family Office for $28 Million at $51 Million Valuation, Acquired 45% of DL Family Office in January 2023 with Net Profit of $2.5 Million in 2022 “
Andy Chen, Chairman of DL Holdings Group: “Three compelling factors underpin our swift move. Firstly, DL Family Office’s exceptional track record and esteemed industry reputation significantly bolster and elevate our listed group’s standing within the industry. Secondly, the full integration of the family office business into our parent company is expected to yield a substantial increase in our management scale, client base, revenue, and profits. Thirdly, the family office business will seamlessly synergize with our existing securities, asset management, real estate, and research institute divisions, enhancing DL’s internal dynamics, reducing communication barriers, and elevating service standards for both family and corporate clients.”
DL Holdings Group (1709.HK) is a Hong Kong-listed asset management and financial services platform with a core focus on investment banking business, covering securities trading, financial consulting, multi-strategy investment fund management, investment research, financial loans and other financial services. Its subsidiary, DL Securities, holds SFC licenses for Type 1 (securities trading), Type 4 (advising on securities) and Type 6 (advising on corporate financing) regulated activities. The Group’s subsidiary, DL Capital, mainly provides asset management services, holding SFC licenses for Type 4 (advising on securities) and Type 9 (asset management) regulated activities. The Group’s subsidiary, ONE Advisory, provides one-stop, bespoke and comprehensive global identity planning consulting services and solutions for high-net-worth individuals and families. The listed company also holds a Singapore RFMC fund license and a Cayman Islands SIBL fund license. The Group has established 18 limited partnership funds in Hong Kong, which mainly invest in private equity. The Group’s subsidiary, Seazon Pacific, is committed to providing overall solutions for supply chain management.
Hong Kong DL Holdings to Fully Acquire Remaining 55% Shares of $2.3 Billion DL Family Office at Maximum $63 Million Valuation, Acquired 45% of DL Family Office in January 2023 with Net Profit of $2.5 Million in 2022
13th July 2023 – Hong Kong DL Holdings has announced to fully acquire the remaining 55% shares of DL Family Office ($2.3 billion AUM, Assets under Management) at a maximum of $63 million valuation (HKD 500 million), having acquired 45% of DL Family Office in January 2023 which reported net profit of $2.5 million in 2022 (HKD 20 million, excludes financial costs & tax). DL Holdings: “As Hong Kong’s first financial institution to establish a multi-family office providing family legacy planning services, DL Family Office is a licensed corporation under the SFO and is permitted to carry on Type 4 regulated activity (advising on securities) and Type 9 regulated activity (asset management). The two subsidiaries under DL Family Office, DL Emerald Wealth Management and DL Advisory, offer insurance, family structure advisory, taxation, education and healthcare and other family office services. The current AUM of DL Family Office have reached US$2.3 billion (approximately HK$18 billion). The net profit of DL Family Office was HK$20 million in 2022 and expected to exceed HK$40 million in 2023. The listed DL Holdings will acquire 55% of DL Family Office at a valuation of no more than HK$500 million, involving an expected investment of HK$275 million. As explained during the Annual General Meeting of DL Holdings, the Company recorded a revenue of HK$190 million and a gross profit of HK$102 million last year, with licensed financial services contributing a revenue of HK$126 million and a profit of approximately HK$38 million. The core business of DL Holdings generated a net profit, excluding financial costs and tax, of HK$20 million. The Company has achieved a record of distributing dividends in three consecutive years. The family office business has always been the core business of DL Holdings. After the merger of family office business, the listed Company is gradually transforming into an asset management and financial service platform with the family office as the core business. DL Holdings aims to create a four-in-one wealth management model consisting of “family office + investment bank + investment bank”.” Earlier in 2023 May, China headquartered Soochow Securities (Hong Kong) and DL Holdings with $3 billion AUM (Assets under Management) have formed a full strategic partnership in family office, wealth management, joint operations & equity, cross-selling financial products and to jointly promote Mainland China, Hong Kong, Great Bay Area (GBA) and Asia-Pacific (APAC). See below for more info.
Hong Kong DL Holdings to Fully Acquire Remaining 55% Shares of $2.3 Billion DL Family Office at Maximum $63 Million Valuation, Acquired 45% of DL Family Office in January 2023 with Net Profit of $2.5 Million in 2022
- DL Holdings (1709. HK) to Acquire Remaining 55% Stake of DL Family Office at Valuation of No More Than HK$500 Million
10th July 2023 – DL Holdings Group Limited (“DL Holdings” or the “Company”; Stock Code: 1709.HK) has recently announced the signing of a Memorandum of Understanding (MOU) regarding to the potential acquisition of the remaining stake in its affiliated company, DL Family Office (HK) Limited (“DL Family Office”), following the acquisition of 45% stake of DL Family Office in January 2023. The Group will acquire the remaining 55% stake of DL Family Office at a valuation of no more than HK$500 million. After the acquisition, DL Family Office will become a wholly-owned subsidiary of the listed DL Holdings Group.
Since the commencement of the acquisition in 2021, DL Holdings has acquired 45% of DL Family Office in a year and a half, then announced the complete acquisition half a year later. The swift acquisition progress demonstrates the rapid development and significant profits of family office business, which contribute to increased income and profits of the listed Company, the scale of asset under management (AUM), the number of customers and the extended service scope.
As Hong Kong’s first financial institution to establish a multi-family office providing family legacy planning services, DL Family Office is a licensed corporation under the SFO and is permitted to carry on Type 4 regulated activity (advising on securities) and Type 9 regulated activity (asset management). The two subsidiaries under DL Family Office, DL Emerald Wealth Management and DL Advisory, offer insurance, family structure advisory, taxation, education and healthcare and other family office services. The current AUM of DL Family Office have reached US$2.3 billion (approximately HK$18 billion). The net profit of DL Family Office was HK$20 million in 2022 and expected to exceed HK$40 million in 2023. The listed DL Holdings will acquire 55% of DL Family Office at a valuation of no more than HK$500 million, involving an expected investment of HK$275 million.
As explained during the Annual General Meeting of DL Holdings, the Company recorded a revenue of HK$190 million and a gross profit of HK$102 million last year, with licensed financial services contributing a revenue of HK$126 million and a profit of approximately HK$38 million. The core business of DL Holdings generated a net profit, excluding financial costs and tax, of HK$20 million. The Company has achieved a record of distributing dividends in three consecutive years.
The family office business has always been the core business of DL Holdings. After the merger of family office business, the listed Company is gradually transforming into an asset management and financial service platform with the family office as the core business. DL Holdings aims to create a four-in-one wealth management model consisting of “family office + investment bank + investment bank”.
Furthermore, DL Holdings has entered into a strategic partnership with Soochow Securities (Hong Kong). The two parties have launched all-round cooperation in the aspects of family office, wealth management, joint operation and equity, including docking domestic and overseas client resources, providing asset allocation strategies and investment products, and selling various financial products on behalf of each other, to jointly promote cross-border investment and wealth management between mainland China and Hong Kong, the Greater Bay Area, and even the Asia-Pacific region. The flagship strategic fund jointly managed by the two parties will be launched soon, and more asset management products will be introduced in the future.
DL Holdings Group (1709.HK) is a Hong Kong-listed asset management and financial services platform with a core focus on investment banking business, covering securities trading, financial consulting, multi-strategy investment fund management, investment research, financial loans and other financial services. Its subsidiary, DL Securities, holds SFC licenses for Type 1 (securities trading), Type 4 (advising on securities) and Type 6 (advising on corporate financing) regulated activities. The Group’s subsidiary, DL Capital, mainly provides asset management services, holding SFC licenses for Type 4 (advising on securities) and Type 9 (asset management) regulated activities. The Group’s subsidiary, ONE Advisory, provides one-stop, bespoke and comprehensive global identity planning consulting services and solutions for high-net-worth individuals and families. The listed company also holds a Singapore RFMC fund license and a Cayman Islands SIBL fund license. The Group has established 18 limited partnership funds in Hong Kong, which mainly invest in private equity. The Group’s subsidiary, Seazon Pacific, is committed to providing overall solutions for supply chain management.
China Soochow Securities & $3 Billion DL Holdings Form Full Strategic Partnership in Family Office, Wealth Management, Joint Operations & Equity, Cross-Selling Financial Products & Jointly Promote Mainland China, Hong Kong, Great Bay Area & APAC
30th May 2023 – China headquartered Soochow Securities (Hong Kong) and DL Holdings with $3 billion AUM (Assets under Management) have form a full strategic partnership in family office, wealth management, joint operations & equity, cross-selling financial products and to jointly promote Mainland China, Hong Kong, Great Bay Area (GBA) and Asia-Pacific (APAC). Announcement: “In recent years, with rapid growth of the global wealthy population and demand for wealth management, family office business, as an important field to promote rapid growth of the asset and wealth management industry, is a significant direction which the HKSAR government has fully promoted. Several favourable policies have recently been announced to attract more family offices to settle in Hong Kong, fully reflecting the determination of Hong Kong to enhance its competitiveness as a global wealth management center and develop the city as a family office hub … … Soochow Securities (Hong Kong) Financial Holdings Limited, a wholly owned subsidiary of Soochow Securities Co., Ltd. has entered into the duly strategic cooperation agreement with DL Holdings in Hong Kong. Both parties will launch all-round cooperation in the aspects of family office, wealth management, joint operation and equity, including docking domestic and overseas client resources, providing asset allocation strategies and investment products, and selling various financial products on behalf of each other, to jointly promote cross-border investment and wealth management between mainland China and Hong Kong, the Greater Bay Area, and even the Asia-Pacific region, thereby empowering each other for win-win cooperation.”
Zhen Xue, President of Soochow Securities: “Soochow Securities (Hong Kong) and DL Holdings have signed a strategic cooperation agreement, taking advantage of the ‘favorable timing, geographical and human conditions.’ The ‘favorable timing’ refers to the global economy gradually recovering from the COVID-19, with China’s economy rebounding strongly after reopening. The favorable geographical’ signifies that both Soochow Securities (Hong Kong) and DL Holdings are based on the shores of Victoria Harbor, adhering to the principles of ‘one country’ while utilizing the advantages of ‘two systems,’ constantly creating new value for clients in this unique geographical position. The ‘ favorable human conditions’ aspect involves DL Holdings possessing a comprehensive talent system and reserves, with the core management team having an average of over twenty years of industry experience. Soochow Securities (Hong Kong) also continues to improve its personnel allocation, fostering a highly efficient and stable team of professionals. Against this backdrop, through complementing and promoting each other, the collaboration between the two parties will undoubtedly generate a synergistic effect where ‘1+1>2,’ bringing about a win-win situation to enhance the core competitiveness of both companies.”
Andy Chen, Chairman of the Board and Executive Director of DL Holdings: “DL will fully leverage its own strengths, particularly focusing on the unique advantages of serving family office clients, corporate clients, and global asset allocation. We will fully connect with Soochow extensive domestic and international client resources, deeply explore the wealth management needs of existing clients, jointly expand the service scope for clients in new areas, and achieve alignment in principles, complementing each other’s businesses, and promoting mutual assistance, all with the goal of swiftly seizing the cross-border asset management market in Hong Kong and the Greater Bay Area in this new era. Simultaneously, we will leverage Soochow’s strong research capabilities and resource network to provide DL’s clients with more comprehensive and in-depth investment banking services and domestic capital support, positioning ourselves as the frontrunners in the industry.”
Soochow Securities & DL Holdings Management Team
Soochow Securities (Hong Kong) Financial Holdings Limited
Soochow Securities (Hong Kong) is a wholly owned subsidiary of Soochow Securities Co., Ltd. (601555.SH). As the platform of internationalization strategy, Soochow Securities (HK) acts as an overseas window for Soochow Securities. Soochow Securities (HK) now holds licenses issued by the Securities and Futures Commission (SFC) of Hong Kong, for Type 1, Type 2, Type 4, Type 5, Type 6, and Type 9 regulated activities, which aims to provide comprehensive and high-quality corporate finance, asset management and brokerage services for global and Hong Kong clients. Leveraging cross-border collaborations through Soochow Securities’ the geographical advantages and rich client resources, Soochow Securities (HK) focuses on securities and futures brokerage, institutional sales and research, corporate finance, fixed income, and asset management, committed to becoming an investment and finance platform with leading characteristics.
DL Holdings Group Limited
DL Holdings Group (1709.HK) is a Hong Kong-listed asset management and financial services platform with a core focus on family office operations. With 13 Years of Establishment, DL dedicated to Serving Ultra-High Net Worth and High Net Worth Individuals and Enterprises in the Asia-Pacific Region, Holding SFC Licenses 1, 4, 6, and 9, with Total Assets Under Management Exceeding $3 Billion. DL has offices in Hong Kong, Shanghai, Singapore, and San Francisco. It is currently the first and only publicly listed group in Hong Kong that combines family office operations. Its business covers a wide range of services including full-cycle family office services, investment banking services, asset management, global real estate investments, alternative investments, insurance services, as well as family governance and planning.
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