Geehy to Take Controlling Stake in Megain

Geehy to Take Controlling Stake in Megain

Megain Holdings Limited (hereinafter referred to as “Megain”) has announced that it will introduce a new controlling shareholder, following a proposed acquisition by Geehy China (referred to as “Geehy”), a core semiconductor platform under China-based listed company Ninestar.

According to a joint announcement, Geehy will acquire control of Megain through its indirect wholly owned subsidiary, Geehy International Limited (referred to as Geehy International), in a transaction with a total value of approximately HK$169 million (US$21.67 million).

The deal consists of two main parts. First, Geehy International will purchase about 211 million existing shares from current shareholders for approximately HK$105.5 million (US$13.53 million), representing around 40.67% of Megain Holdings’ current issued share capital.

Second, Megain will issue about 104 million new shares to Geehy International through a private placement at a price of HK$0.61 (US$0.078) per share. After deducting related expenses, the company is expected to receive net proceeds of roughly HK$61 million (US$7.82 million).

Once both transactions are completed, Geehy will hold approximately 50.56% of Megain’ enlarged share capital, becoming the company’s controlling shareholder. Based on the transaction terms, Megain is valued at around HK$334 million (US$42.83 million). Under Hong Kong takeover rules, Geehy International will also be required to make a mandatory cash offer to acquire the remaining shares it does not already own.

In recent years, Megain has faced operational pressure amid intensified competition and changing market conditions. Following the transaction, Megain is expected to benefit from new capital support and a strengthened shareholder structure, though the pace and outcome of any business adjustments remain to be seen.

Trading in Megain’ shares resumed on the Hong Kong Stock Exchange on January 26, 2026. The company has cautioned that the transactions are subject to certain conditions and may not ultimately be completed, and has advised investors to pay close attention to future disclosures.

Editor’s Note

This move underscores Ninestar’s determination to refocus on its high–gross-margin chip business following the divestment of Lexmark. It also enables its subsidiary, Geehy, to accelerate toward independent capitalization and a potential value reassessment.

For Megain, the transaction strengthens its chip product portfolio, enabling expansion into industrial and automotive chip applications by leveraging Geehy’s chip technologies, IP capabilities, and industry resources.

Overall, this move is expected to accelerate the localization of printing chips in China, while pushing competing chip suppliers to upgrade their technologies.

Related:

• Megain Reports Revenue Decline & Profit Contraction in 2024
• Katun to Showcase Intelligent Solutions at the 2026 IT Partners
• South Korean Printer Tara TPS Acquires Chicago Offset
• MPS Systems Reborn as MPS Printing

Comment:

Please leave your comment below about the news: Megain Reports Revenue Decline & Profit Contraction in 2024.