Opinion Real Estate Network News:On December 20, Shunhao Holdings Limited disclosed that on the same day, its subsidiary Shunhao Resources Group Limited entered into a provisional sale and purchase agreement with the seller as the buyer. Accordingly, the Purchaser agreed to acquire the Sale shares from the Vendor, accounting for all the issued shares and the sale of debt of the target company Yujin Investment Limited at a consideration of HK $24 million.
It is reported that the target company Yujin Investment Co., Ltd. is a limited company registered in Hong Kong, its main business is property investment. The only asset of the target company is the property, No. 21, II Nasatel Avenue, 33 Kwu Tung Road, Sheung Shui, New Territories, Hong Kong, with a net debt value of approximately HK $4366000 as at 31 December 2020.
The seller is Liu Yao, who holds all the shares in the target company. To the best of the knowledge, knowledge and belief of the board of directors of Shunhao Holdings after making all reasonable enquiries, the seller is an independent third party.
As for the reasons for the transaction, Shunhao Holdings believes that the current market conditions are based on the most favorable low mortgage interest rates, economic recovery after 2019-nCoV 's illness is under control, and the plan to reopen the border. in particular, the Hong Kong government recently announced that the development of the Northeast New Territories will add 114300 people and 33300 jobs and new towns including commercial science and technology parks after the completion of the development. The plan has attracted major real estate developers to acquire nearby large residential projects, making the acquisition a good investment opportunity for the company with the potential for capital gains.
With regard to the price, Shunhao Holdings stated that the total consideration of HK $24 million was determined by the parties to the Provisional Sale and purchase Agreement after fair negotiations and taking into account the current market conditions in Hong Kong and the comparable prices of properties in the vicinity. The decision was made with reference to historical transaction records.
As the saleable price of the property (i.e. HK $14085) is much lower than the highest practical price recorded in history (i.e. HK $24042), the Board considers that the consideration is set on normal commercial terms and is fair and reasonable. The acquisition will be funded by internal resources of Shunhao Holdings.