Kerry construction (00683) announced that the seller (giant assets Holdings Limited, a wholly-owned subsidiary of the company) accepted the binding written offer made by China Resources Logistics (Group) Co., Ltd. (China Resources Logistics) on May 20, 2022, The Seller agrees to sell and China Resources Logistics agrees to purchase all the issued share capital of belminton Inc. and dec Limited (target company) holding warehouses through two intermediate holding companies and all relevant shareholder loans (if applicable), with a total consideration of HK $4.62 billion (subject to customary adjustment).
Chaiwan target company Dec limited indirectly holds Chaiwan warehouse through an intermediate holding company. Chai Wan warehouse is located at 50 Ka Yip Street, Chai Wan, Hong Kong, China. As at 31 December 2021, the carrying value of Chaiwan warehouse was approximately HK $2.280 billion.
The Shatin target company belmenton Inc. indirectly holds the Shatin warehouse through an intermediate holding company. Shatin warehouse is located at 36-42 Shanwei street, Shatin, New Territories, Hong Kong, China. As at 31 December 2021, the carrying value of the Shatin warehouse was approximately HK $1460 million.
The directors conduct strategic reviews of the group’s assets from time to time, hoping to bring maximum returns to shareholders. Considering the current market conditions under covid-19 epidemic, the financial situation of the group and the operation performance of the warehouse, the directors believe that the sale provides the company with an excellent opportunity to release the value of the warehouse and enable the company to recycle capital to strengthen the balance sheet and operation of the group.
