Glonghui December 12丨Baoguang Industrial (00084.HK) announced that on December 12, 2023, the seller (a wholly-owned subsidiary of the company) and the buyer Breitling SA entered into a share sales agreement. According to this, the seller agreed to sell and the buyer agreed to buy sales shares (equivalent to all issued share capital of the target company Universal Geneve SA) and sales loans. The total cost of the sales shares and sales loans was 60.0 million Swiss francs.

According to the terms and conditions of the share sale agreement, after completion, the authorized retailer (a wholly owned subsidiary of the company) enters into an inventory sale agreement with the target company on the completion date immediately after completion. According to this, the authorized retailer will sell inventory to the target company and deliver all remaining inventory to the target company on the delivery date.

The target company is a company incorporated in Switzerland and is an indirect wholly owned subsidiary of the company as of the date of this announcement. The target company's main business is watch supply chain management and distribution, which includes trademark licensing for watch retail distribution and provision of international warranty and after-sales services for watches sold through retail distribution.

The directors believe that the sale of their interests in the target company is in the interest of the group to monitor voluntary buyers, and that the sale of shares provides a valuable and rare opportunity for the company to monetize the value of the target company at a favorable price.