Metro in talks on potential sale of indirect 30% stake in Chinese firm

METRO Holdings said that it is in talks with H-Change Real Estate Group Ltd on a potential disposal of its indirect 30 per cent interest in a Chinese company called Nanchang Top Spring.

No legally binding agreement has been inked yet by Metro Shanghai (HQ) Pte Ltd, the group's subsidiary that owns a direct 30 per cent stake in Nanchang Top Spring.

"As there is no certainty that the potential divestment will materialise, shareholders are advised to exercise caution when dealing in the shares of the company and to refrain from taking any action in respect of their investments which may be prejudicial to their interests," Metro said on Wednesday.

Its announcement followed an earlier filing by Hong Kong-listed Top Spring International Holdings Limited this month on a conditional sale and purchase agreement to sell shares of certain companies to H-Change, including a 19 per cent equity interest in Nanchang Top Spring owned by Top Spring Insite.

Nanchang Top Spring is mainly involved in project investment and management consultancy services, as well as project development and management. A 51 per cent stake in Nanchang Top Spring is indirectly owned by another Top Spring subsidiary called Tai Xiang, which Top Spring has also agreed to sell to H-Change under the conditional agreement.