Top Wealth Group Holding Ltd (NASDAQ:TWG) shares jumped 114% in premarket trading on Tuesday after the company said it plans to acquire Airentity International Limited, a wine trading group valued at around $125 million.
Under the proposed deal, Airentity’s wine authentication and tracking system (WATS) would become part of Top Wealth’s operations, enabling the caviar supplier to broaden its presence in the luxury goods market. The WATS platform, launched in 2025, is already used by wine distributors linked to Winwin Development Group Limited, Top Wealth’s controlling shareholder.
As part of the consideration, Top Wealth plans to issue about 15 million Class A ordinary shares and 3 million Class B ordinary shares to the sellers, based on an offer price of $7.00 per share. The transaction has received unanimous approval from the company’s independent directors.
“This acquisition not only broadens our product mix but also deepens our presence in the luxury segment where caviar and fine wine naturally complement each other. We are confident in our unified vision and future growth prospects,” said Mr. Kim Kwan Kings Wong, owner of Winwin Development Group Limited.
Top Wealth, which is incorporated in the Cayman Islands and supplies premium sturgeon caviar under its “Imperial Cristal Caviar” brand as well as through private-label arrangements, expects the transaction to close around January 20, 2025. The company said the deal should boost profitability and expand its asset base by targeting overlapping high-end customer groups.