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- To actively advance in the Chinese property market
- Consolidate its presence as the parent Group's exclusive listed platform overseas
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HONG KONG, Dec 2, 2014 - (ACN Newswire) - Peking University Resources (Holdings) Company Limited ("PKU Resources" or the "Company"; stock code: 618) today dispatched an official circular to its shareholders announcing the acquisition of 12 property development projects from Fine Noble Global Limited and Peking University Resources Group Property Limited for a total consideration of HK$1.934 billion. The acquisition enables the Company to utilise the resources of Peking University and Founder to develop into an integrated resources-based urban operator.
Through this transaction, PKU Resources will secure 12 property development projects in Chongqing, Changsha, Foshan, Chengdu, Guiyang, Qingdao and Wuhan to be developed into residential and commercial properties and office buildings. As at 30 September 2014, 7 of the 12 acquired properties have begun pre-sale, covering an area of 569,000 sq.m. As it represents a very substantial acquisition and connection transaction, the acquisition is subject to a number of conditions including the approval of the Stock Exchange of Hong Kong and independent shareholders. Upon completion, Peking University will transfer its quality resources into the acquired projects to implement a unique development model where it provides value-added services to boost the value and selling prices of properties, reinforcing the competitiveness of the Company and sustaining its business development.
The total consideration for the acquisition is HK$1,934 million, including HK$1,361 million for the offshore acquisition and HK$573 million for the onshore acquisition. The consideration is to be satisfied by a combination of the Company's internal cash reserves, the issuance of consideration shares to the controlling shareholder Founder Information (Hong Kong) Limited and all or part of the cash proceeds from the issuance of placement shares. The Company plans to issue not more than 6,052,307,690 new shares. For the purpose of satisfying the consideration for the offshore acquisition, consideration shares with the amount of HK$1,361 million will be issued to Founder Information. In case Founder Information may wish to subscribe more shares to maintain its controlling stake over the Company, Founder Information will pay for such additional shares with the amount of not more than HK$573 million in cash. Besides, the Company plans to place the placement shares with the amount of not more than HK$2 billion according to the Placing Agreement. The proceeds will be used to partially satisfy the consideration and for general corporate use. The Company will submit the application to the listing committee for the approval of the listing of and dealing in the consideration shares and placement shares to be allotted and issued on the Stock Exchange.
In order to facilitate the possible issue of the consideration shares, additional shares and placement shares under the specific mandate and provide for future expansion in its share capital, the Company proposes to increase its authorised share capital from HK$300 million divided into 3,000,000,000 shares to HK$1.5 billion divided into 15,000,000,000 shares by the creation of an additional 12,000,000,000 shares. On 16 September 2014, the Company entered into a master loan agreement to borrow from PKU Resources Group, its associates and independent financial institutions designated by that Group and its associates to fund its property projects. The move enables the Company to more efficiently utliise its internal resources and should lead to more flexible resource allocation amongst the Group's companies and reduction of pressure from working capital.
Upon completion, PKU Resources can use the platform of the acquired projects, enlarge its land bank and increase its NAV with the aim to become an integrated resources-based urban operator. With its quality education, medical and cultural resources from the close affiliation with Peking University and Founder Group, PKU Resources Group will invest in a number of Peking University's affiliated kindergartens and high schools throughout its property projects out of Beijing, improving local education level. In the meanwhile, by setting up New Cultural Center and PKU Healthcare Management Center in communities, PKU Resources Group will provide property projects with cultural, medical and financial related space and services such as, PKU lecture, PKU library, community diagnosis and treatment, financial supermarket.
Besides, the property owners of the acquired properties can access the Ziyuanjia online community service platform which connects them with services provided by PKU Resources including education consultation, online medical consultation, reservation of medical check-ups, financial services, online shopping, etc. New Cultural Center, PKU Healthcare Management Center and Ziyuanjia online community service platform have already become the standard facilities in property projects of PKU Resources Group, providing convenience to residents.
Ms. Yu Li, Chairwoman and Executive Director of Peking University Resources (Holdings) Company Limited, said, "PKU Resources is undergoing a strategic transformation and has started diversifying its business by entering the Chinese property industry. Unlike most other developers outsourcing services to contractors, PKU Resources integrates internal resources, thus being able to avoid many conflicts, inferior services from personnel changes and risk of unsustainability. By leveraging synergies with Peking University, Founder Group, and other internal resources, and implementing innovative systems and leveraging the power of the internet, we hope to bring the world-class education, medical and cultural resources of Peking University, as well as the financial and technology industrial resources of Founder Group into our communities and provide these services to our residents."
Contact:
Strategic Financial Relations (China) Limited
Ms. Nan Dong Tel: (852) 2864 4811 Email : nan.dong@sprg.com.hk
Ms. Ada Leung Tel: (852) 2114 4967 Email : ada.leung@sprg.com.hk
Ms. Wendy Qian Tel: (852) 2114 4947 Email : wendy.qian@sprg.com.hk
Topic: Press release summary
Source: Peking University Resources (Holdings) Company Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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