Hong Fok Corporation has entered into an agreement for the disposal of 38.8 percent shares of Winfoong International, to HK Guoxin Investment Group at HK$0.3618 per share, with a total consideration of approximately HK$370.5 million
The agreement was entered into by Hong Fok Corporation (Cayman), Hong Fok Corporation (H.K.) and First Strategy Investments, a wholly-owned subsidiary of the group.
The transfer price of HK$0.3618 represents a premium of 22.6 percent over the closing price of HK$0.295 per target share as on 27 March 2015, the last trading day prior to entering into a memorandum of understanding. The transfer price also represents a 239.4 percent premium over the unaudited net assets per target share of approximately HK$0.1066.
During the three years ended 31 December 2014, Winfoong and its subsidiaries were loss making despite generating stable but insignificant revenue from their principal activities, which includes property related business, provision of horticultural services and securities trading.
Contributed by Shares Investment
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