Gelonghui, January 31, 丨 First Service Holdings (02107.HK) announced that on January 31, 2024, the buyer First Property Services (Beijing) Co., Ltd. (an indirect wholly-owned subsidiary of the company) entered into an equity transfer agreement with the seller. According to this, (i) the seller agreed to sell and the buyer agreed to acquire 51% of the target company's Dalian World Airlines construction project free of charge; and (ii) the buyer agreed to invest RMB 5.1 million in cash into the target company, accounting for 51% of the target company's registered capital.
Following the completion of the acquisition, the company will hold 51% of the target company's shares. The target company will be an indirect non-wholly-owned subsidiary of the company, and its financial results will be incorporated into the Group's financial statements.
According to reports, the target company is a limited liability company established on April 27, 2016 in accordance with Chinese law. The target company is mainly engaged in providing construction and related engineering services. After completion of the acquisition, the target company was owned by the buyer and 49% by the seller, respectively.
The directors believe that the target company has a certain level of brand recognition and has accumulated rich experience in providing construction and related engineering services. Since the acquisition of 51% of the target company's shares will create a synergy effect between the target company and the company's existing business, and enhance the company's overall operating efficiency through comprehensive services, wider service supply and added value to customers, the acquisition will benefit the company.
The target company has developed rapidly in major cities in China, which is in line with the company's business scope. It will have a synergy effect with the company's existing property management projects in the relevant regions. Following the completion of the acquisition, the company and target companies will integrate management models and further consolidate their respective positions in the Chinese property management market, thereby promoting the Group's diversified development in the Chinese property market.