Zhitong Finance App News, Yunnan Water (06839) issued an announcement. The company has made a decision on the sale of the rights and interests. Since the company is a state-owned holding enterprise, the sale of rights constitutes a state-owned asset, and according to relevant Chinese laws and regulations governing the sale of state-controlled assets, the sale must be carried out through a public listing procedure through an approved property rights exchange. Potential sales will be carried out through the Yunnan Property Exchange, and the successful bidder will enter into a property rights transaction contract with the company in accordance with the relevant rules and regulations of the Yunnan Property Exchange.
As of the date of this announcement, the minimum price for the sale of the rights (preliminary bid price) has not been determined. The initial bid price will be announced at the beginning of the official listing process. The final price will depend on the final bid price of the public listing, but in any case it will not be less than the minimum price.
According to reports, the sale interest is 65% of Lizhou Water's shares held by the company. Lizhou Water was founded on August 22, 2017, and is mainly engaged in tap water production and supply and construction engineering business (projects subject to approval according to law can only be carried out after approval by relevant departments). As of the date of this announcement, Lizhou Water is a subsidiary of the company holding 65% interest. Lizhou Water's profit after tax in 2021 and 2022 was RMB 5.8862 million and RMB 7.117 million, respectively.