Haobai International (08431) announced that on January 26, 2024, the buyer Wanhui International Group (the company's...
According to the Zhitong Finance App, Haobai International (08431) announced that on January 26, 2024, the buyer Wanhui International Group (a wholly-owned subsidiary of the company) signed a sales agreement with the seller Huang Jingmin. The buyer conditionally agreed to buy at a cost and the seller conditionally agreed to sell the shares. The cost of trading the sales shares was HK$2.7 million. The price will be paid by inducing the company to allocate and issue the shares in consideration to the seller.
According to the terms and conditions of the sale agreement, the buyer conditionally agreed to the acquisition and the seller conditionally agreed to sell shares, that is, the entire issued share capital of the target company. After the restructuring is completed, the target company will have a 15% partnership interest in Yongqiang Company.
On the date of this announcement, why was Yongqiang Company a wholly-owned company established by Mr. Yao Tim in Hong Kong. Since 1992, it has mainly been engaged in providing engineering and construction services to various public institutions and private companies in Hong Kong. The engineering and construction services provided by Yongqiang Company include site preparation work, shallow foundation and piling foundation work, metal plate formwork engineering, substructure and repair work, maintenance engineering, and electromechanical engineering. Yongqiang's clients include but are not limited to the Hong Kong Government, MTR Corporation Limited and various property management companies. As of the date of this announcement, Yongqiang Company is carrying out construction projects for 7 projects, including residential projects, schools and public projects.
The acquisition provided a valuable opportunity to expand its business footprint into the wider field of Hong Kong's construction industry. At the same time, the company was able to bring in experienced business partners, which is expected to help the Group's long-term growth and development in Hong Kong's construction industry. Furthermore, since the cost of selling shares will be paid through allotment and issuance of shares, the acquisition does not require significant cash expenses.