Jinwu Financial News | Pearl Holdings (01176) announced that the company has entered into a memorandum of understanding with the seller Group and the Target Company, and it is expected that the Group will (a) initially directly acquire a stake of not more than 10% of the Target Company; and (b) subsequently directly acquire a stake of not more than 70% of the Target Company through multiple exercise of call options, and immediately upon completion, the Group will hold no more than 80% of the Target Company.
In addition, under the MOU, the Vendor Group intends to grant options to the Group for nominal consideration, giving the Group the right to claim that if the Group is for any reason unable to enjoy the economic benefits and commercial returns arising from the financing land, the Vendor Group is required to acquire all equity interests in the target company held by the Group.
According to the relevant agreement previously entered into, the target company is responsible for developing an urban renewal project (target old reform project) of a rural collective economic organization in the old village of Guangzhou. The target company will obtain economic benefits and commercial returns by selling the properties developed on the designated part of the target old project land (financing land).