00720.HK Holdings announced a connected transaction in which its wholly-owned subsidiary Racing Time intends to buy the target company VMS Auto Italia Fin Services Holdings from VMS Holdings Limited, which is 92 per cent owned by Mai Shao, the company's main shareholder, for a consideration of 960 million yuan, which will be paid through an allotment of 6.957 billion shares at 0.138 yuan per share, equivalent to about 131.4 per cent of the company's existing issued share capital and 56.8 per cent of the expanded issued share capital.
Upon completion of the transaction, the shareholding ratio of the seller and the concerted action group in the company will increase from 29.73% to 69.64%. If all outstanding share options are exercised, the shareholding of the seller and the concerted action group in the company will be further increased to 70.08%. The seller will apply for cleaning exemption in accordance with the acquisition Code rules.
The target group is mainly engaged in investment holding, and its business will include alternative asset management focusing on private equity investment in China's health care and technology, media and telecommunications and consumer industries; and providing consulting and project management services supporting alternative asset management services, or other services related to private equity investment in China's healthcare and TMT industries, mainly in private equity related transactions And assist customers in general corporate business, strategy and organization.