Jinwu Financial News | Thomson Group (00258) announced that on September 22, 2023, the company's indirect wholly-owned subsidiary Aoyong Co., Ltd. intends to sell its 100% equity interest in Shanghai City to China Sinochem and Ustar for a consideration of about RMB 404 million. Sinochem and Ustar have conditionally agreed to buy 53 per cent and 47 per cent of the shares for sale, respectively, for cash. The company is expected to earn about HK $54.5 million from the sale.
According to the notice, the property is the group's only industrial property project and is regarded as a non-core project. The property is a far cry from the Group's other major property projects in Pudong New area, Shanghai, China, and it is difficult to produce synergy in operation. The disposal will enable the Group to realize the investment value accumulated over a period of time since the investment in the property, which is a good opportunity to enhance the Group's current financial flexibility. The disposal will further enhance the cash flow and financial position of the Group.