The plan of rongchuang service (01516. HK) to acquire first service holding (02107. HK) came to an abrupt end after nearly three months.
On January 3, rongchuang Service announced that due to the failure to reach a formal agreement with the seller on the deadline of December 31, 2021, the agreement to acquire some shares of first service Holdings has been terminated.
Rongchuang service said that the seller suddenly overturned the previous consensus reached by both parties on transaction price and transaction arrangement on December 31, 2021, resulting in the failure to complete the signing of the formal agreement.
According to the announcement on rongchuang services, the liquidity problems previously encountered by contemporary real estate, a related party of first service holding, have directly caused significant uncertainty on the realizability and sustainability of contemporary real estate business from first service holding and the recoverability of contemporary real estate receivables.
Rongchuang service said that according to these circumstances, the two sides had previously negotiated on the reduction of transaction price and transaction arrangement, and the formal agreement after negotiation and adjustment has been expressed in writing by the seller without objection. But the other side suddenly overthrew on December 31.
As of press time, the first service holding has not made an announcement on this.
After the termination of the agreement, according to the rules, the seller must return the deposit previously paid by rongchuang services within a certain period of time.
The transaction plan of both parties began in early October 2021. On November 1, rongchuang service and first service holdings jointly announced that they had entered into a share transfer agreement on October 7, 2021, and rongchuang service purchased 322 million shares of first service with a total consideration of 692.7 million yuan, accounting for about 32.22% of the total share capital of the latter.
In the acquisition pricing, the consideration per share was 2.15 yuan (equivalent to HK $2.62), a 91% premium over the closing price of HK $1.37 during the brief suspension of the first service on October 8.
Rongchuang service disclosed in the announcement at that time that the acquisition of the first service was optimistic about its green living service capacity and third-party expansion space.
As of June 30, 2021, the contracted construction area of first service holdings is about 72.994 million square meters, the construction area under management is about 53.202 million square meters, and the non residential business accounts for about 60% of the construction area under management.
(21st Century Business Herald)
