Gudou Holdings (08308.HK) announced that the indirect wholly owned subsidiary of Guangdong Gudou and Guangdong Gudou Hotel management, enter into a capital reduction agreement with the Yangjiang Sega Real Estate Development and original shareholders. Under the equity reduction agreement, Guangdong Gudou will withdraw from the Sega real estate development in Yangjiang City through share capital reduction, Yangjiang Sega Real Estate Development will pay 24.3 million yuan (the same below) to Guangdong Gudou (i.e. Guangdong Gudou under Capital Increase Agreement until the share reduction agreement date Xiangjiang Sega real estate development Total amount of payments paid) and related interest. The fund is the amount of contribution of the registered capital of Sega real estate development in Xiangyang River City, Guangdong Gudou and other payments made by Sega real estate development advances in Xiangyang River City in Guangdong Gudou Xiangyang River City.
As part of the share capital reduction, the registered capital of Yangjiang Sega Real Estate Development will be reduced from $22.4 million to $1.1 million. After the share capital reduction, the company will no longer hold directly or indirectly in Yangjiang Sega Real Estate Development which will also cease to be an associated company of the Company.