Glonghui November 6 | Country Garden Services (06098.HK) and Hefuhuang (00733.HK) Joint Announcement, on November 6, 2023, Country Garden Properties Hong Kong (a wholly-owned subsidiary of Country Garden Services), Mr. Fu Weicong (Executive Director and Controlling Shareholder of Hefu Huihuang), China-net Holding Ltd. (a company wholly owned by Mr. Fu Weicong and a major shareholder of Hefu Huihuang) and Hofu Huihuang entered into a strategic cooperation agreement relating to the possible acquisition of Country Garden Properties Hong Kong (as a potential buyer) from China-Net Holding Ltd. (as a potential seller) in connection with the sale of shares and Country Garden Property Hong Kong (as a subscriber)Xiang HeFu Huihuang (as publisher)Subscribe for subscribed shares.
According to the strategic cooperation agreement, China-net Holding Ltd. plans to sell sales shares (that is, 71.64 million shares of Hefu Huihuang shares, equivalent to about 10.63% of Hefu Huihuang's issued share capital at the date of this joint announcement) to Country Garden Properties Hong Kong, thereby increasing the shares held by Country Garden Properties Hong Kong in Hefu Huihuang from about 25.00% to about 35.63% (excluding subscribed shares). The total cost of selling shares will be HK$115 million, which is equivalent to HK$1.61 per share sold.
According to the strategic cooperation agreement, as a legally binding responsibility between Country Garden Properties Hong Kong and Hefu Huihuang, Country Garden Properties Hong Kong has agreed to subscribe, while Hefu Huihuang has conditionally agreed to distribute and issue subscription shares, that is, 26.966 million new Hefu Huihuang shares, equivalent to about 4.00% of the issued share capital of Hefu Huihuang on the date of this joint announcement and Hefu Huihuang has expanded the issued share capital by about 3.85%. The total price for the subscription of shares was HK$43.415 million, which is equivalent to the subscription price of HK$1.61 per share.
Since the completion of the previous acquisition, Country Garden Properties Hong Kong has become the second largest shareholder of Hefu Huihuang. The conclusion of strategic cooperation agreements and subscription matters is part of the long-term strategic cooperation between Country Garden Service Group and Hefu Huihuang Group. Through this strategic cooperation, Country Garden Service Group and Hefu Huihuang Group will integrate their competitive advantages and share online channels and offline resources in the field of real estate agency services to build business synergy. Through the subscription program, Country Garden Properties Hong Kong can increase its shares in Hefu Huihuang and provide equity capital to Hefu Huihuang to continue to support the business development of Hefu Huihuang Group and achieve the strategic vision and goals of Country Garden services.