Acquiring Overseas Security Company, FSG Enhances Security Capabilities Significantly


On 23rd September 2021, Frontier Services Group entered into an acquisition agreement with Mr. Li Xiaopeng, the founder of DeWe International Security Group. FSG has agreed to acquire the entire issued share capital of DeWe Security Limited wholly-owned by Mr. Li at the initial consideration of HK$200 million in cash. Consideration shares of maximum HK$300 million will be issued as deferred consideration in the following three years based on the operation performance after the completion of the acquisition.

The main business lines of DeWe Security Limited and its subsidiaries are security services and healthcare rescue services. Full range of security solutions for overseas Chinese-funded enterprises are provided, such as public security consulting, public security training, overseas on-site public security management, and public security technology protection, etc. The management team have extensive experience and credentials in rendering services to government and commercial sectors and overseas Chinese-funded enterprises with security risks.

Healthcare rescue services involve the provision of innovative medical solutions, which includes the rendering of general and specialist services on oncology, rendering of vaccination, telemedical and emergency rescue services to its patients, led by a group of experienced medical practitioners.

DeWe Security's comprehensive security qualifications, strong credentials and stable contract portfolio will help FSG bid for new government or private security contracts. The medical and healthcare services will become FSG's new business line, expanding FSG's foothold in the field of healthcare. The acquisition will enable FSG to comprehensively meet the security and medical needs of clients, allowing FSG to stand out in the market competition, increase market share, and create a stable source of income and cash inflow.

Upon completion of the acquisition, DeWe Security will become a wholly-owned subsidiary of FSG.

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