China International inks deal to sell loss-making Tianjin property unit
INVESTMENT holding company China International Holdings (CIH) has inked a deal to sell a loss-making property-development unit for 460 million yuan (S$94.4 million) in cash, it said in a Singapore Exchange (SGX) filing on Tuesday.
The unit, Tianjin Xinzhong Property Development Co, holds the rights and benefits for the group's Tianjin Jixian project, which comprises the land use rights for some land on the north shore of Cui Ping Lake Tourist District, east of Ji county in Tianjin, the group said. Tianjin is a city in northern China.
The buyer is Beijing Hongkunweiye Property Development Co, a property management and development company.
CIH said the Tianjin Xinzhong unit had been in the red since 2010 and was non-operational, but the Tianjin Jixian project had an "interim" market value of 350.11 million yuan as at June 30, 2016. It estimated net proceeds from the disposal would be 421.51 million yuan.
It added that although the proposed sale constituted a "major transaction" under SGX listing rules, CIH believes it does not need to get the green light from shareholders for the disposal and will try to get SGX to waive the shareholder approval requirement.
CIH halted trading on Sept 30 "pending release of an announcement", and said on Tuesday trading will resume on Oct 5. Before the halt, its shares had shot up 16 per cent or 1.8 Singapore cents to S$0.13 on Sept 29.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Meituan to debut in Riyadh as expansion beyond China quickens
Mapletree Industrial Trust to distribute S$13 million of divestment gains over next 4 quarters
K-pop agency Hybe’s internal strife wipes out 1.2 trillion won
Beijing city to subsidise domestic AI chips, targets self-reliance by 2027
Hong Kong bourse regains favour on hopes of a market revival
Chinese sellers go to TikTok school to reach buyers abroad