China Overseas Group plans to sell 64.79% equity and related debt in XingTai TongGang Property Co., Ltd. for a total transaction consideration of RMB 4 billion. The buyers include a limited liability partnership enterprise held by China Life Insurance, which holds about 99.99% of the partnership interest, and a buyer owned wholly by Swire Properties engaged in property investment. The transaction will be paid in two installments, with the first installment of RMB 3.8 billion and the second installment of RMB 200 million, subject to specific conditions. The transaction is expected to bring about an unaudited loss of approximately RMB 17.63 billion to China Overseas Group. The proceeds will be used to repay priority debt and necessary obligations, and approximately RMB 3.07 billion will be used to...Show More

China Overseas Group plans to sell 64.79% equity and related debt in XingTai TongGang Property Co., Ltd. for a total transaction consideration of RMB 4 billion. The buyers include a limited liability partnership enterprise held by China Life Insurance, which holds about 99.99% of the partnership interest, and a buyer owned wholly by Swire Properties engaged in property investment. The transaction will be paid in two installments, with the first installment of RMB 3.8 billion and the second installment of RMB 200 million, subject to specific conditions. The transaction is expected to bring about an unaudited loss of approximately RMB 17.63 billion to China Overseas Group. The proceeds will be used to repay priority debt and necessary obligations, and approximately RMB 3.07 billion will be used to repay certain loans and debts. Due to the downward pressure on the Chinese real estate market and difficulties in financing channels, China Overseas Group faces significant liquidity pressure. KaiSheng Capital Co., Ltd. has been appointed to provide advisory services to the independent board of directors and independent shareholders on the transaction. A special general meeting of shareholders will be held on July 11, 2024 to consider and approve the sale agreement and the transactions involved, including the sale of equity and debt interests in the target company. China Overseas Group has been granted a right of first refusal to repurchase equity and debt interests from the buyer under specific conditions in the future. The independent financial advisor considers the terms of the sale agreement and the transactions involved to be fair and reasonable, and in the interests of the company and its shareholders.