[Caihua News] AV CONCEPT HOLD (00595.HK) announced that the seller (Sichuan Ocean Land Development Co., Ltd.) recently contacted the company and proposed to terminate the pre-sale contract. And refund the consideration paid by the Purchaser (Chengdu Xinda Jerry Investment Management Co., Ltd., a wholly-owned subsidiary of the Company) in respect of the acquisition under the presale contract of RMB 20 million (equivalent to approximately HK $24.6 million) and compensation of RMB 3.6 million (equivalent to approximately HK $4.428 million) to the Purchaser.
On January 13, 2022, the buyer and the seller entered into a settlement agreement, under which the parties agreed that: (I) the pre-sale contract will be terminated and the acquisition will not be completed; (ii) the seller will refund the consideration paid by the buyer under the pre-sale contract for the acquisition of RMB 20 million (equivalent to about HK $24.6 million) and compensate the buyer for RMB 3.6 million (equivalent to about HK $4.428 million). And (iii) upon termination of the pre-sale contract, the buyer and seller will be discharged from all their obligations, liabilities, claims and liabilities under the pre-sale contract.
The Company has considered a number of factors and the Directors consider that the proposal is an opportunity to help the Company avoid uncertainty and reduce related risks; and the terms of the settlement Agreement are fair and reasonable and in the interests of shareholders as a whole.
The Directors are of the view that the proposed transactions under the settlement Agreement will not have any material impact on the operation of the Group.