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2004-5-13 04:31:00 p.m. HKT, XFNA
Hong Kong-listed Wai Yuen Tong unit to buy WOD Investments for 64.5 mln hkd
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HONG KONG (AFX-ASIA) - Wai Yuen Tong Medicine Holdings Ltd (897.HK) said
its unit Source Millennium Ltd has agreed to buy all the issued shares of WOD
Investments Ltd, together with a shareholder's loan, for 64.5 mln hkd.
The shares will be bought from Wang On Enterprises (BVI) Ltd, a
wholly-owned subsidiary of Wang On Group Ltd, which has a 19.62 pct stake in
Wai Yuen Tong.
The consideration of 64.5 mln hkd, which is subject to adjustment, will
be paid in cash and financed by proceeds from a proposed rights issue, Wai
Yuen Tong said in a statement.
Wai Yuen Tong has proposed to issue three rights shares for every share
held by existing shareholders, at a subscription price of 0.16 hkd. The
company also plans to offer one bonus share for every three rights shares
taken up.
The company expects to raise 265.3 mln hkd by issuing about 1.66 mln
rights shares to qualifying shareholders.
The principal asset of WOD Investments Ltd is the WYT Building, a
six-storey building in Kowloon Bay, which will be leased back to Wang On or
its subsidiary at a rental of 196,000 hkd per month.
The purchase consideration is based on the valuation of the building of
85 mln hkd, adjusted for a shareholder's loan to WOD Investments and
unaudited net deficit of WOD Investments as at March 31, 2004, the statement
added.
In April 2002, WOD Investments Ltd acquired the WYT Building from an
independent party for 40 mln hkd.
(1 usd = 7.8 hkd)
jill.wong@afxasia.com
jyw/rc
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