Shimao Group (00813) released an announcement stating that on August 7, 2024, the seller (three subsidiaries of the company) ...
Shimao Group (00813) announced that on August 7, 2024, the seller (three subsidiaries of the company) and the buyer, China State Construction Engineering Corporation Third Engineering Bureau and the project company Xiamen Shimao Xinlinghang Property Co., Ltd., signed an agreement. Accordingly, the seller agreed to sell its shares (100% registered capital of the project company) to the buyer for a price of RMB 0.59634 billion yuan.
The project company is a property development company that holds the project, which is a comprehensive residential, commercial, and business complex located in Jimei District, Xiamen City. After the completion of the sale and the settlement of the project company's RMB 0.37372 billion yuan creditor's rights held by the group, the group will no longer have any equity in the project company. The announcement stated that due to the group's need for further investment to sustainably develop the project, and considering the company's current liquidity issues, the company is unable to invest or support the project's continued development. After the completion of the sale, the buyer will own 100% of the project company's shares and will be responsible for continuing to develop the project and the project company's operation. This enables the group to repay its debt owed to the buyer and release the group from other liabilities in the project.
The sale allows the group to repay its debt owed to the buyer and release the group from other liabilities in the project.