Zhitong Finance App News, Future World Holdings (00572) issued an announcement. On April 15, 2024, the seller (Meiyi Holdings Co., Ltd., a wholly-owned subsidiary of the company) signed a sales agreement with the buyer, Mr. Li Shizhang. The seller conditionally agreed to sell and cause the intercompany loan lender to transfer the benefits of the intercompany loan to the buyer, and the buyer conditionally agreed to acquire all issued shares of the target company (Tianying Limited) and the intercompany loan at a cost of HK$38 million (subject to adjustment). After completion, the target company will no longer be a subsidiary of the company, and the target company's financial results will no longer be consolidated into the group's financial statements.
The target company is mainly engaged in investment holdings. The target company is the legal and beneficial owner of the property, including the remaining portion of the land at No. 3250 in Kowloon and the building built on it (known as No. 20 Kwun Chung Street, Kowloon), along with the sole and exclusive right and privilege to own, use, occupy and enjoy the ground floor (including its courtyard and roof deck above the building). The property is the target company's only significant asset.
The Group continues to optimize its property portfolio. After a regular review of its investment portfolio, the Group believes that there are limited opportunities for significant value growth of the property. Therefore, the Board believes that the sale will help the Group to realize the value of its investment in the property and enhance the Group's financial flexibility. The sale will bring the Group approximately HK$37.85 million in net proceeds (subject to adjustment) to cover general working capital and reserve additional reserve funds for future investment opportunities.