Financial Street Holdings (000402.SZ) announced that its wholly-owned subsidiary, Chang'an Real Estate, intends to Hold 30% of Changrong Company...
According to the Zhichun Finance APP, Financial Street Holdings (000402.SZ) announced that its wholly-owned subsidiary, Chang'an Real Estate, intends to transfer its 30% equity in Changrong Company at the Peking Property Exchange, with the transfer price not lower than the assessment price approved by the State-owned Assets Supervision and Administration Commission. At the same time, the company will transfer a debt of 0.18 billion yuan from Changrong Company to the transferee or its affiliates via an agreement. Another shareholder of Changrong Company, Science City Real Estate, intends to participate in this public transfer, and after the transfer is completed, Chang'an Real Estate will no longer hold shares in Changrong Company.
The company's wholly-owned subsidiary, Chang'an Real Estate, intends to participate in the acquisition of 51% equity of Changjin Company which is being transferred at the Peking Property Exchange by Science City Real Estate, with the purchase price not exceeding the assessment price approved by the State-owned Assets Supervision and Administration Commission. Chang'an Real Estate or its affiliates will assume a debt of 0.18 billion yuan owed by Changjin Company to the controlling shareholder of Science City Real Estate through an agreement. After the acquisition, Chang'an Real Estate will hold 100% of the shares of Changjin Company.
According to the announcement, Peking Future Science City Changrong Real Estate Co., Ltd. ("Changrong Company") is an associate of the company, with the company's wholly-owned subsidiary, Financial Street Chang'an (Peking) Real Estate Co., Ltd. ("Chang'an Real Estate") holding 30% of its shares, while the other shareholder, Peking Future Science City Real Estate Co., Ltd. ("Science City Real Estate"), holds 70%. Peking Future Science City Changjin Real Estate Co., Ltd. ("Changjin Company") is also an associate of the company, with the company's wholly-owned subsidiary, Chang'an Real Estate, holding 49% of its equity, and the other shareholder, Science City Real Estate, holding 51%.
The announcement states that Science City Real Estate, as a platform company in Changping District, holds a large number of public properties in the Changping area and is responsible for coordinating the development of regional industries on behalf of the government, which differs from the company's operational approach in project public property sales. After the completion of this transaction, it will be beneficial to improve decision-making efficiency within the project company and promote project sales.
The transfer of shares intends to be priced based on market assessment, with the company repurchasing shares of Changjin Company and transferring shares of Changrong Company; Science City Real Estate will repurchase shares of Changrong Company and transfer shares of Changjin Company; ultimately, the company will wholly hold the assets of Changjin Company, exit Changrong Company, and reduce asset holdings and recover part of the cash flow through share transfer to achieve the goal of partial asset disposal. After the shares of Changjin Company are recovered, the company will adopt a market-oriented approach and tiered pricing based on saleable area, operating the entire building as a rental property to revitalize Changjin Company's assets.