Eurosports Global Limited Completes Strategic Acquisition to Increase Stake in Prosper Auto

Key Highlights

• Eurosports Global Limited has successfully increased its shareholding in Prosper Auto Pte. Ltd. to 80%.
• The transaction was completed on 30 December 2025.
• The acquisition involved the purchase of 145,029 ordinary shares in Prosper Auto from Eden Capital Pte. Ltd. at S\$12.41 per share, totaling S\$1,800,000.
• This consideration was satisfied by the transfer of 10,000,000 treasury shares of Eurosports Global Limited, valued at S\$0.18 per share.
• The transaction was first announced on 13 November 2025.

Detailed Analysis for Investors

Eurosports Global Limited (“the Company”) has cemented its position as the controlling shareholder in Prosper Auto Pte. Ltd. by raising its stake to 80%. This was achieved through a well-structured share purchase agreement with Eden Capital Pte. Ltd., whereby Eurosports acquired 145,029 Prosper Auto shares at a premium price, reflecting the strategic importance of this acquisition.

The total consideration for the acquisition was S\$1.8 million, but notably, the payment was made in the form of the Company’s own treasury shares instead of cash. This approach preserves Eurosports’ cash reserves and potentially aligns Eden Capital’s interests with the future performance of Eurosports, as Eden Capital will now hold a significant equity stake in the Company.

The treasury shares used for this transaction were valued at S\$0.18 per share, which could imply a valuation expectation for the Company. Investors should note that the use of treasury shares for acquisitions is a common practice, but it can have a dilutive effect on earnings per share (EPS) if not accretive to future profits. The increase in Prosper Auto ownership to 80% may, however, allow Eurosports to consolidate more of Prosper Auto’s future profits, which could be positive for EPS in the longer term.

Potential Share Price Impact

• Control and Consolidation: With 80% control, Eurosports Global can drive strategic direction and synergy realization in Prosper Auto, potentially boosting group performance and delivering higher returns to shareholders.
• Non-Cash Consideration: The use of treasury shares as consideration minimizes cash outflow, preserving financial flexibility for further strategic initiatives.
• Dilution Factor: The transfer of 10 million treasury shares to Eden Capital may lead to some dilution for existing shareholders, but this is balanced against the potential earnings accretion from the increased stake in Prosper Auto.
• Strategic Alignment: Aligning a former seller (Eden Capital) as a shareholder could facilitate smoother future cooperation and operational integration.
• Disclosure: The announcement has been reviewed by the Company’s sponsor, RHT Capital Pte. Ltd., but has not been approved by the Singapore Exchange, which assumes no responsibility for its content.

What Shareholders Need to Know

This transaction increases Eurosports Global’s influence and financial interest in Prosper Auto, which may be significant for shareholders as it could enhance future earnings and group value. However, shareholders should also be aware of the potential dilution from the transfer of treasury shares. Additionally, as the transaction was completed via share transfer rather than cash, it demonstrates the Company’s ability to preserve liquidity for other growth opportunities.

Any future performance improvement in Prosper Auto will now have a more pronounced impact on Eurosports’ consolidated financial statements, which could be positive for the share price if Prosper Auto delivers strong results.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. The Singapore Exchange has not reviewed or approved the contents of this article and assumes no responsibility for its accuracy or completeness.

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