Gelonghui, April 8, 丨 Lixin International (00191.HK) and Lixin Development (00488.HK) announced that on April 8, 2024, the seller Peakflow Profits Limited (a wholly-owned subsidiary of Lixin Development) and the buyer Grand Design Development Limited entered into a sales agreement for the sale of shares (10% of Bayshore Development's shares). Bayshore Development holds all legal and beneficial interests in the property. Upon completion, Lai Sun Garment Group and Lai Sun Development Group will each no longer hold any interest in Bayshore Development.
The seller was a limited company incorporated in the British Virgin Islands. The seller is a wholly-owned subsidiary of Lai Sun Development and an indirect non-wholly-owned subsidiary of Lai Sun Garment (holding shares in Lai Sun Development through Lai Sun Garment). The seller was an investment holding company.
“This property” means all such lots or lots of land in Waterfront Lot No. 275, Waterfront Section 278A and the remainder of Waterfront Lot No. 278 respectively, together with all homes, structures and buildings on it, which are now known as “AIA Finance Centre” at 1 Connaught Road Central, Hong Kong.
The sale enables the seller to realise the investment value of the property, thereby enhancing the overall cash flow and financial position of Lai Sun Garment Group and Lai Sun Development Group. Although it is expected that Lai Sun Garment Group and Lai Sun Development Group will each record losses on sales matters, these losses are non-cash items, and the sale will improve the cash flow situation of Lai Sun Garment Group and Lai Sun Development Group.
Therefore, the board of directors of Lai Sun Garment and the board of directors of Lai Sun Development each believe that the seller's sale was prudent, that the terms and conditions of the sale agreement were fair and reasonable, and in line with the overall interests of their respective companies and shareholders. Since the relevant amount is calculated based on the agreed property value and Bayshore Development's estimation/estimated assets and liabilities on the completion date, and the amount will be adjusted based on the audited completed accounts, the Lai Sun Garment Board and the Lai Sun Development Board each agree that it is fair and reasonable to achieve the initial cost benchmark.