Dianchi Water (03768) issued an announcement regarding the company's intention to sell target shares held by the company through public listing...
Zhitong Finance App News, Dianchi Water (03768) issued an announcement on matters relating to the company's intention to sell 80% of each of the company's shares held by the company through public listing. The company has received a notice from the Kunming Joint Property Exchange regarding the identity of the successful bidder for the sale of the company's rights.
According to relevant laws and regulations and relevant transaction rules of the Kunming Joint Property Exchange, (1) the Company (as the transferor), Sichuan Development Guorun Water (as the transferee), and Zhaotong Dianchi Water (as target company I) entered into a property rights transaction contract I on December 29, 2023;
(2) The company (as the transferor), Sichuan Development Guorun Water (as the transferee) and Yiliang Dianchi Water (as target company II) enter into a property rights transaction contract II; and
(3) The company (as the transferor), Sichuan Development Guorun Water (as the transferee), and Suijiang Dianchi Water (as target company III) enter into a property rights transaction contract III.
The company conditionally agreed to sell and the transferee conditionally agreed to buy and sell the rights. The cost includes a total share transfer price of approximately RMB 243 million for the sale of the rights and a total of approximately RMB 2,412,600 of which the agreed interest calculated based on the price paid by the transferee in installments is based on the final actual calculated amount. The total cost is expected to not exceed RMB 245 million. If the final interest, as agreed to be calculated based on the price paid by the transferee in installments, deviates from the board's estimate, causing the total transaction cost to exceed the estimated RMB 245 million, the company will make a separate announcement in due course.
After the sale is completed, the Group will only own 20% of each of the target companies. The target companies will no longer be subsidiaries of the Company, and their financial results will no longer be consolidated into the Group's comprehensive financial statements.
Carrying out the sale allows the company to recover the investment amount and realize the return on investment in advance, so that the company has more flexibility in seeking and participating in other suitable investment opportunities.