Meijian Group (00335) issued an announcement. On November 10, 2023, the buyer (Upbes, a subsidiary of the company...
According to the Zhitong Finance App, Meijian Group (00335) announced that on November 10, 2023, the buyer (Upbest Land Company Limited, a subsidiary of the company) and the seller (Deng Yaowen and Deng Yaosheng) entered into a temporary sales agreement. The buyer agreed to buy and sell shares from the seller, that is, all of the issued shares and sold bonds of the target company at a total cost of HK$180 million.
According to reports, the debt sale was debt owed by the target company to Fuyi Trading Limited. As of December 31, 2022, the debt sold was approximately HK$390 million.
The target company is Weihao Enterprise Co., Ltd., a limited company incorporated in Hong Kong. Its main business is property investment. The target company's sole assets are these properties and their leases.
These properties are currently idle or leased to individuals or businesses and tenants who are independent third parties, with a total monthly rent of approximately HK$130,000. On the date of the provisional sale agreement, according to preliminary valuations prepared by independent valuers, the market value of these properties was approximately HK$200 million. The target company's net debt as at 31 December 2022 is approximately HK$65 million (including after debt sale). The target company's net losses after tax for the years ended 2021 and 31 December 2022 were HK$15.375 million and HK$15.582 million, respectively.
The announcement said that property investment has always been one of the company's main businesses, and the company is constantly searching for suitable investment opportunities in the property market. These properties are located in the shopping mall and some parking spaces in Bayview Garden, Tsuen Wan, Hong Kong, China. It is one of the few shopping malls with 4 nearby commercial buildings and a limited supply of parking spaces. In view of current market conditions and attractive costs, the Board believes that the acquisition represents a good investment opportunity for the Group in a rent-income property with potential for capital gains.