Weifang (People’s Republic of China), 14. August 2013
- Major step of asset restructuring in order to achieve reorganization of Euro Asia
Euro Asia (JT9; ISIN: VGG3223A1057) announces, that on August 9, 2013, its wholly owned subsidiary Xinpu has signed a framework agreement to sell the Company’s Agricultural and Exhibition Centre and Cloud Lake Resort projects to San Kin Yip, a Company owned by one of Euro Asia’s directors. It has been generally agreed between both parties, that in consideration for the assets to sell, Xinpu will receive a price of RMB¥ 150 million (approx. € 18.4 million).
The sale proceed from the transaction together with over RMB¥ 220 million (€ 27.0 million) of surplus working capital will be re-invested. The Company has on August 9, 2013 entered into an additional framework purchase agreement for the purchase of other parcels of real estate assets for approximately RMB¥ 380 million (€ 46.7 million). The transaction is subject to shareholders’ approval and representation and warranties of the project and due diligence for the benefit of Euro Asia. The final purchase price is subject to valuation of an independent property advisor.
At the completion of both transactions the Company is expected to be debt free and surplus working capital to fulfill the development plans. The package of information will be presented at the Company’s upcoming AGM, scheduled for the second half of September 2013.
Patrick Chan, CEO of Euro Asia, stated, “The successful completion of these transactions will effectively complete the asset sale aimed at re-focusing our interests in Weifang, Shandong. The asset sale is a key element in the Company’s reorganization, which commenced in 2011.”
The transaction will be described in detail in the appendix of annual report 2012, that is scheduled to be published before the annual general meeting. The extensive supplement is the reason for late then expected publication.
Schwarz Financial Communication
Tel: +49 611 1745 398 11
About Euro Asia
Euro Asia is a BVI registered company, active in real estate development in the Shandong area of the People’s Republic of China. The Company operates locally through its subsidiaries, jointly owned with SNI, a leading local development company. Generating leasing revenues from a number of commercial properties, the Company has a number of other projects under development. By utilizing its strong local network to banks, political decision makers, land owners and other developers, the Company intends to grow its position in the region prior to moving into other prefecture-level cities.