China Rare Earth to sell fluorescent products business for HKD500,000
2017-12-25 17:39:52 [Print]
China Rare Earth announced that on December 22, 2017 (after trading hours), the seller Lee Shing Holdings Limited (a wholly owned subsidiary of the company) and buyer Wang Xiang (an independent third party) signed the agreement, according to which the seller agreed to sell and the buyer agreed to buy all issued share capital of the target company, Yinmao Holdings co., Ltd., with sale price of HKD500,000 which will be paid by the buyer in the form of cash or bank draft to the seller, the proceeds of sale will be used as general working capital.
Located in Hong Kong, the target company holds 100% stake of project company, Yixing Yinmao Fluorescent Material co., Ltd., 100% stake, which is mainly engaged in manufacturing and sales of fluorescent products with registered capital of about HKD134 million. The target group recorded after-tax losses of about HKD74.888 million and HKD16.779 million respectively in the two fiscal years of 2015 and 2016.
The board of directors believes that the target group's business prospects is uncertain now with products' demand and related prices continuing to shrink, and the group's further investment on the project company does not necessarily bring strategic value for the group. The sale provides an opportunity for the group to reallocate resources and put more resources to develop rare earth and refractory products business.
Located in Hong Kong, the target company holds 100% stake of project company, Yixing Yinmao Fluorescent Material co., Ltd., 100% stake, which is mainly engaged in manufacturing and sales of fluorescent products with registered capital of about HKD134 million. The target group recorded after-tax losses of about HKD74.888 million and HKD16.779 million respectively in the two fiscal years of 2015 and 2016.
The board of directors believes that the target group's business prospects is uncertain now with products' demand and related prices continuing to shrink, and the group's further investment on the project company does not necessarily bring strategic value for the group. The sale provides an opportunity for the group to reallocate resources and put more resources to develop rare earth and refractory products business.
