China Everbright International announced on 27 May its disposal of the Fuzhou Qingzhou Bridge to generate cash for developing its environmental protection business.
Everbright agreed to dispose of its 80% interest in Greenway Venture and its shareholder’s loan due from Greenway for about RMB384.8 million (US$60.4 million) and HK$188.6 million (US$24.3 million) respectively to TransGlobal (Asia).
Everbright is listed on the Hong Kong Stock Exchange, and the deal is subject to announcement requirements under the exchange’s listing rules.
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Greenway is a British Virgin Islands company, operating the Fuzhou Qingzhou Bridge through its subsidiaries in Hong Kong and China.
The bridge “was owned by Everbright International through a BVI company/Hong Kong company/Sino-foreign cooperative joint venture company structure,” said Vivian Lam, a partner at Paul Hastings in Hong Kong who led the firm’s team on the deal.
“The disposal involved due diligence and compliance on several levels and three different jurisdictions,” she said.In addition, “as the appraisal of Everbright International’s 80% equity interest involved the use of the discounted cash flow approach, the valuation of the company’s equity interest constituted a profit forecast under the listing rules”. Therefore the company must comply with relevant rules, Lam said.
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