11 Nov 2008
Everbright International Announces Disposal of non-core property business
Consolidates resources for environmental protection businessChina Everbright International Limited ("Everbright International" or "the Group") (SEHK: 00257), today announced that it has entered into two agreements with Everbright Real Estate Limited (a wholly-owned subsidiary of its controlling shareholder, China Everbright Holdings Company Limited) to dispose of the entire issued share capital of its two wholly-owned subsidiaries, Sino Villa Holdings Limited ("Sino Villa") and Riseland Limited ("Riseland"). Pursuant to the Listing Rules, the transactions constitute connected transactions of the Company and are subject to the approval of the Independent Shareholders at the extraordinary general meeting of the Company.
The total cash consideration for the sale is HK$195,907,000. The Group currently intends to apply the sale proceeds for general working capital purposes. After completion, it is expected that the estimated gain for the disposal of approximately HK$21,744,000 will be realized by the Group for the year ending 31 December 2008, and the disposal will also increase the consolidated net asset value of the Group by approximately HK$21,744,000. However, the actual gain will be finalized only after the completion of audit in the year end and adjustment will be made to reflect the results of Sino Villa and Riseland up to the completion date of the transactions.
Sino Villa's sole assets are the four levels of commercial podium with total gross floor area of approximately 15,191 sq.m situated at Zhongshan Garden. Zhongshan Garden is a commercial and residential project located in the central business district and at the junction between Phoenix Road and Huali Road in Shenzhen, Guangdong Province, the PRC and its property management service is provided by Shenzhen Zhongshan Property Management Limited ("Zhongshan Property"). Riseland is the beneficial owner of 95% interest in Zhongshan Property. Sino Villa has entrusted Zhongshan Property to operate and manage the leasing of the commercial podium of Zhongshan Garden.
Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "The sale of the Group's non-core property related business allows the Group to consolidate its resources in the development of its core business of environmental protection. Meanwhile, we will continue to actively explore the environmental protection business opportunities with growth potential which ultimately generate more fruitful returns for investors."