Economic Daily Group (00423) issued an announcement. On January 26, 2024, the seller Asia (Far East) (Company...
Zhitong Finance App News, Economic Daily Group (00423) issued an announcement. On January 26, 2024, the seller Asia (Far East) (an indirect wholly-owned subsidiary of the company) signed an interim agreement with the buyer China Mobile Hong Kong. The seller has agreed to sell, and the buyer has agreed to buy the property at a cost of HK$135 million, subject to completion of the conditions. Upon completion, the buyer (as the franchisor) and the seller (as the licensee) will enter into a license agreement for the right to use the scope of the completed license.
According to reports, the property is located in plants A, B (including their attached platforms), C and D on the 2nd floor of Block 1, Taiping Industrial Centre, 57 Ting Kok Road, Tai Po, New Territories, Hong Kong, China.
The property was originally used as one of the Group's printing plants to provide publishing and printing services. Group management has noticed a decrease in the market demand for newspaper printing, partly due to the digital transformation of print media and partly due to the Group's strategic focus on digital platforms in recent years. As a result, the Group has recently integrated, rationalized and reallocated its printing resources to improve the use of plant space in a more effective, efficient and productive manner. As a result, the printing plant located in this property has been closed since December 2023.
The Group continues to operate its printing plant located on the third floor of the same building. In view of this, the seller will enter into a license agreement with the buyer after completion, so that the Group can continue to place two cooling towers within the scope of the license at a reasonable license fee for printing equipment located in the printing plant on the third floor without affecting the operation of the printing plant.
The directors saw the sale as an opportunity for the company to realize the value of the property at a reasonable price. Since the net proceeds from the sale will be used as the Group's working capital, this move will strengthen the Group's financial position.