http://www.businesstimes.com.sg/com...sell-stake-in-unit-shiny-profit-for-329b-yuan
China property developer Ying Li to sell stake in unit Shiny Profit for 3.29b yuan
Tue, Nov 28, 2017 - 8:53 AM Wong Kai Yi
kaiyiw@sph.com.sg
MAINBOARD-listed Chinese property developer Ying Li International Real Estate has announced on Nov 28 it is selling its stake in its wholly owned subsidiary Shiny Profit Enterprises to Shengyu (BVI) - part of the China Evergrande Group - for 3.29 billion yuan (S$671.9 million) in cash, in a deal slated to close before the end of November.
Together with the proposed sale, Ying Li will buy and transfer a land parcel in Chongqing to Shengyu.
Shengyu will pay 2.77 billion yuan for Shiny Profit, and a further 514.7 million yuan of land tender deposits.
Shiny Profit is a British Virgin Islands-incorporated investment holding company and has a share capital of US$10,000 comprising 10,000 ordinary shares.
Shiny Profit owns 1.01 billion yuan of registered capital in Chongqing Yingli Shiny Profit Real Estate, which holds the "rights, powers, interests and benefits" of the Ying Li International Commercial Centre Project, a premium integrated project located in Jiefangbei, Chongqing's central business district (CBD).
Shiny Profit recorded a loss before tax of 4.41 million yuan for the nine months ended Sept 30, with zero revenue. Its net tangible assets totalled 1.36 billion yuan for the same period, counting towards 27.1 per cent of Ying Li's net assets.
Shengyu (BVI) will pay 9.7 per cent of the deal's price five days after the deal closes, 39.6 per cent 30 days after the closure and 16.1 per cent upon the successful acquisition of the land parcel, which is expected to occur three months from Nov 28.
A further 0.3 per cent and 16.8 per cent will be paid three and 180 days respectively after the third tranche, with the final 17.5 per cent being paid 180 days after the penultimate tranche payment.
Ying Li said that the transaction will help "realise the capital value" of the Chongqing CBD project and strengthen the company's finances, with net proceeds going towards reinvestment in other property projects, repayment and borrowings and general working capital.
Price link:
http://www.shareinvestor.com/fundamental/factsheet.html?counter=5DM.SI