World Wide Touch Technology (HKG:1282) has agreed to acquire from Kam Yun-kwong the entire issued share capital of Gallant Tech Limited for a consideration of US$8 million (HK$62.24 million) plus a net book value. As conditions precedent to the acquisition agreement, Kam will execute a deed of non-competition in favour of Gallant Tech and enter into a service agreement with Gallant Tech on the completion date.

Each party to the acquisition agreement shall make its/his respective best efforts to achieve satisfaction of each condition in the acquisition agreement as soon as practicable and in any event not later than 31 January 2012.

Gallant Tech is principally engaged in the business of equipment supply and services in the printed circuit board assembly and semiconductor packaging market. It provides world-class surface-mount technology assembly, test equipment and semiconductor packaging machines and the installation and application services. Currently, Gallant Tech owns a wholly-owned subsidiary in Shenzhen, the PRC which is engaged in the import and export of electronic products in the PRC. For the financial year ended 31 December 2011, it had HK$14.366 million profit after tax.

As one of the conditions precedent under the acquisition agreement, Kam and Gallant Tech will enter into a service agreement, pursuant to which Kam will be employed as the general manager of Gallant Tech for a fi xed term of 3 years from the completion date. Under the service agreement, Kam shall be entitled to such salary, commission and discretionary bonus as the board of Gallant Tech may determine, the aggregate sum of which shall be subject to a cap of HK$1 million for each year of service.