Zhitong Finance App News, Lixin International (00191) and Lixin Development (00488) jointly announced that on May 14, 2024, the seller (including Kingswood and Bright Jewel, each an indirect wholly-owned subsidiary of Lixin Development) and the buyer Weishan Shipping Pte.Ltd. Based on this, Kingswood and Bright Jewel will sell 475,000 common shares of the target company Singapore Guangcheng Co., Ltd. to the buyer Shares, which together account for 47.5% of the issued and paid up share capital of the target company; and Kingswood and Bright Jewel sold and transferred shareholder loans totaling approximately P$12.66 million to the buyer at a total cost of approximately US$14.7871 million.
According to the sale agreement, the buyer has agreed to grant a put option to Kingswood after completing the transaction and Kingswood's payment of P1 to the buyer. According to this, at any time from the completion date and as long as Kingswood remains a shareholder of the target company, Kingswood has the right to require the buyer to purchase all remaining shares of the target company held by Kingswood from Kingswood in accordance with the sale agreement.
According to reports, the target company is owned by Lixin Development Group in 50% of its total issued shares, and the target company and the contract joint venture do not constitute a subsidiary of Lai Sun Garment or Lai Sun Development. The target company's main business includes investment holding and providing marketing services to contract joint ventures. A contract joint venture company invests in and operates golf courses. The golf course is an 18-hole golf course located in Xiancun Town, Zengcheng, Guangzhou, China. Golf course facilities include a standard golf course, driving range, clubhouse with restaurant, golf equipment specialty store, and parking.
In view of ongoing business development needs and complex business environment and policy risks, the sale (and put options after being exercised by Kingswood) will help Lixin Development Group to refocus management resources and reallocate financial resources. Proceeds from the sale will be used to improve its capital structure and/or general corporate use, and enhance the overall cash flow and financial position of Lai Sun Garment Group and Lai Sun Development Group.