Gelonghui November 22 │ Freetech (06888.HK) announced that on November 22, 2024, the seller (the company's indirect non-wholly-owned subsidiary) and the buyer entered into a share purchase agreement, pursuant to which the buyer conditionally agreed to acquire and the seller conditionally agreed to sell 55% of the issued shares of the target company Tianjin Highway Maintenance Co., Ltd., for a price of 71.1 million yuan. Upon completion, the target company will no longer be a subsidiary of the company.
The main business of the target company is to provide maintenance and repair services for highways and highway facilities, road projects, highway greening projects, and construction projects; machinery and equipment rental, highway engineering, and consulting services.
The company believes that the sale will provide the group with greater flexibility in management and resource allocation to develop its asphalt pavement maintenance services in China, particularly the 'in-situ thermal regeneration' project. After the sale, the group will continue to engage in asphalt pavement maintenance services in China (including the Tianjin area) mainly through other wholly-owned subsidiaries and focus on developing asphalt pavement maintenance services through the 'in-situ thermal regeneration' project. As of the date of this announcement, apart from the sale, the group has no plans to change its business or reduce, terminate, or sell any of its businesses after the completion of the sale. The group's business and revenue model will remain unchanged after the completion.
