On October 15, Fullshare Holdings (00607.HK) announced that on October 15, 2024, the company's wholly-owned subsidiary Five Seasons XIX entered into agreements with Sparrow Early Learning and Sparrow Holdings. According to the agreement, Five Seasons XIX conditionally agreed to sell approximately 24.01% of Sparrow Early Learning's equity to Sparrow Early Learning and Sparrow Early Learning can choose to repurchase a batch or multiple batches of part or all of the shares sold at a total price not exceeding the highest cost (i.e. 20,000,000 Australian dollars).
Sparrow Early Learning is a limited company established in Australia, mainly engaged in education services. As of the date of this announcement, Sparrow Early Learning is owned by Sparrow Holdings and Five Seasons XIX with approximately 75.99% and 24.01% equity respectively.
The company believes that the potential sale is a good opportunity for the group to sell shares. The consideration will also generate positive cash flow for the group upon completion. The parties to the agreement agree that, under the current arrangement, since the prices for each batch are calculated based on (including) Sparrow Early Learning's latest financial statements and will be paid in installments rather than in a lump sum, the possibility of the potential sale having a significant adverse impact on Sparrow Early Learning's daily operations and cash flow is low. Therefore, the group will benefit from the growth and value of Sparrow Early Learning. It is currently estimated that the first batch may be completed within the next six months, depending on Sparrow Early Learning's decision and the fulfillment of the agreement's conditions. Therefore, the potential sale may start providing reasonable returns to the company and generate positive cash flow in the short term.
