According to the Zhitong Finance App, Jiangshan Holdings (00295) issued an announcement regarding the proposed sale of domestic shares of Bank of Jinzhou Co., Ltd. After shareholders approved the proposed sale at the special shareholders' meeting, Jiangshan Yongtai submitted a domestic stock offer for acceptance of 108 million domestic shares held in Jinzhou on April 11, 2024. On April 15, 2024, Jiang Shan Yongtai received the acceptance documents returned by the offeror. On April 16, 2024, Jiang Shan Yongtai sent a letter to the offeror asking about the intention and reasons for returning the acceptance documents. The Group later received an oral notice on April 18, 2024. The acceptance was rejected due to the pledge of 108 million domestic shares in Jinzhou.
Jiangshan Yongtai signed a share pledge with Jinzhou Jinqiao Pawn Co., Ltd. as the beneficiary in connection with the loans and loans obtained by the Group from the Bank of Jinzhou. As of the date of this announcement, the outstanding amount of the loan was RMB 250 million and will be due and repaid in July 2025.
Although 108 million shares of domestic shares in Jinzhou are subject to share pledges, since delivery of such shares without the burden of property rights should be a condition that must be met when the shares are changed to the offeror, the company believes that it should not affect acceptance. The Group will continue to communicate with the Offeror and will take all necessary actions to protect the Group's legitimate rights and interests.
In view of the foregoing, the proposed sale has been terminated and will not continue to be completed. The Board believes that the termination of the proposed sale will not have any material adverse impact on the Group's business, operations or financial position.