Huazhang Technology To Acquire Logistics and Warehouse Centre in Guangdong Province
Huazhang Technology Holding Ltd will acquire the entire issued share capital of the Target Company and the shareholder's loan, at an aggregate consideration of approximately HK$205 million, which would be satisfied in full by the company's issue of the Consideration Shares upon completion.
The total number of Consideration Shares to be allotted and issued upon Completion based on the issue price of HK$2.55 per Consideration Share is approximately 80.40 million. The issue price represents a discount of approximately 30.9 percent to the closing price of HK$3.69 per share as quoted on the Stock Exchange on the Last Trading Day (16 June).
Immediately after completion and allotment and issue of the Consideration Shares, Swift Fortune Holdings Ltd and 777 Logistics Warehouse Holdings Ltd will own 8.86 percent and 2.95 percent of Huazhang, respectively.
The Target Group is currently constructing a logistics and warehouse centre on the Project Land located in the Guangdong Province. Upon completion which is expected to be around the end of 2017, the centre can provide bonded logistics services of raw materials, equipment and supplies for paper-making enterprises in the PRC.
The Project Land has a total site area of approximately 193,203 square meters. The Project Land was granted by the PRC government with a lease period from 23 December 2015 to 22 December 2065 specified in the land use right certificate.
