Daily news and Commentary on the Chinese Real Estate sector
HKC(190.HK) disposed of a subsidiary to connected persons
May 23, 2012
- On 22 May 2012, HKC Infrastructure and HKC (HK) entered into a framework agreement with Jinhai Trading to dispose of the entire issued share capital of, and the loan advanced to, Treasure Island at an aggregate consideration of HK$254 mn.
- Jinhai Trading is an associate of connected persons of the company and its main business is production of paper pulp.
- Treasure Island is the legal and beneficial owner of the entire issued share capital of HKC (Yangpu) Water Supply Limited, which in turn is the owner of 65% of the entire equity interest of and in the Water Supply Company.
- The disposal enables the Group to realize a significant gain from its investment in the Water Supply Company and is in line with the Group’s strategy of disposing non-core assets and fostering the Group’s expansion in property investment projects