Weiye's unit to buy two residential plots in China

A unit of Weiye Holdings has entered into a share transfer agreement to acquire two companies that own the land-use rights of two residential plots in China.

Under the agreement inked on Monday, Weiye Property Holdings (Shenzhen) Co Ltd (Weishen Property) will acquire 100 per cent interest in Huizhoushi Dajinzhou Property Development Co Ltd (HDPD) and Guangdong Leiding Property Development Co Ltd (GLPD) from their shareholders for about 215 million yuan (S$43.7 million) in cash.

HDPD and GLPD own the land-use rights of residential plots of 6,271 sqm and 25,210 sqm. The locations of the plots and the vendors of the two companies are unspecified in Tuesday's announcement.

Weiye said the agreement was concluded at arm's length on a willing-buyer, willing-seller basis.

Upon the signing of the agreement, Weishen Property shall pay a refundable 10 per cent deposit of 21.5 million yuan, with the remaining 90 per cent of 193.5 million yuan payable within 15 days.

The acquisition shall be funded from Weiye's internal resources and bank loans, and is not expected to have any material impact on the net tangible assets per share and earnings per share of the group for the current financial year ending Dec 31, 2016.