Territory Holdings (06999) announced that the restructuring of seven property projects jointly owned by the Group and Meishan Hongda involved Meishan Haina's agreement to transfer 97.46% of the shares of the acquired company to Meishan Territory at a cost of about 290 million yuan; and the sale of 55% of the company's shares to Meishan Hongda in Chuanruida, Meishan Huarui Hongda and Meishan Haina, at a total cost of about 810 million yuan.
Upon completion of the proposed transaction, the Group will directly hold 97.46% of the shares in the acquired company, rather than through Meishan Haina. As a result, the Group's actual equity in the acquired company will increase from 53.603% to 97.46%.
The company anticipates that the sale will help the company strengthen its cash flow, thereby enabling the company to better meet any future challenges and adhere to its prudent business strategy. It is recommended that the net proceeds from the transaction will be used as the Group's general working capital, which can further facilitate compliance with the requirements of “secure property” and “protect operations”.