MMG (01208.HK): Enters into Framework Agreement with Shipping Subsidiary of Controlling Shareholder, with Annual Transaction Cap of USD 39 Million
NewTimeSpace News: MMG Limited (01208.HK) announced on January 28 that the Company has entered into a shipping framework agreement with Minmetals Shipping, an affiliate of its controlling shareholder, for a term of approximately one year. Under the agreement, Minmetals Shipping will provide maritime transportation services for the shipment of the Group's products from Peru and Australia.
As Minmetals Shipping is a wholly-owned subsidiary of China Minmetals Corporation, the ultimate controlling shareholder of the Company, the transaction constitutes a continuing connected transaction which is subject to the corresponding reporting and disclosure requirements, but is exempted from the approval of independent shareholders.
The agreement shall be effective from January 28, 2026 to January 31, 2027. The service pricing shall be denominated in US dollars and determined on an arm's length basis in accordance with the prevailing international market practices and rates for similar services. Pursuant to the agreement, the annual cap for the relevant transaction amount is set at USD 39 million for the 2026 fiscal year, which is determined with reference to the pricing principles of the agreement, the Group's projected production volume, current market rates and other relevant factors.
The board of directors is of the view that the entry into the agreement will enable the Group to obtain additional maritime transportation service options beyond the existing suppliers, thereby better fulfilling its delivery obligations to customers and managing its operations. The directors (excluding the interested directors) consider that the terms of the agreement are entered into on normal commercial terms, fair and reasonable, and in the overall interests of the Company and its shareholders.
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