According to Zhitong Financial App News, Asia Resources (00899) announced that on August 23, 2023 (after the trading session), the buyer Donghui Group Co., Ltd. (a direct wholly-owned subsidiary of the company), the seller Chuangshi Financial Group Co., Ltd., and these target companies (Yongyi Investment Holdings Limited and Yongming Investment Holdings Co., Ltd.) entered into such agreements with these guarantors. According to this, according to the terms and conditions of these agreements, the buyer agreed to the acquisition, while the seller conditionally agreed to sell shares A (equivalent to all shares of target company A) and sale B ( Equivalent to 73.1% of the issued share capital of target company B) and shareholder loans.
After the restructuring of these target companies and their subsidiaries is completed, target company A will indirectly own the Jiuyuan project located in China through Hunan Chenxi and Jiuyuan Mining, while target company B will indirectly own the Jinhao project located in China through Hunan Hongjia and Jinhao Mining. The total cost to be paid by the buyer in connection with these acquisitions was HK$200 million. The buyer will settle the cost of HK$157 million by issuing acceptance notes and the remaining amount of HK$43.1664 million by allocating and issuing 188 million consideration shares at an issue price of HK$0.23 per share of consideration shares.
From time to time, the Group has been looking for investment opportunities to expand and strengthen its asset portfolio, expand its revenue sources, and accelerate the Group's overall further growth. These acquisitions will contribute stable cash flow and revenue to the Group. These acquisitions are an excellent opportunity for the Group to invest in China's natural resources industry.
In the face of rapid economic growth in emerging countries, strong demand for zinc and lead has become the main driving force for the zinc and lead ore industry to expand production capacity. The directors believe these acquisitions will be a profitable investment. In particular, the continued growth of the Chinese economy and the acceleration of industrialization and urbanization will generate sustainable demand for natural resources in the long run.