Wang On Group (01222.HK) and Wai Yuen Tong (00897.HK) Sell Shenzhen Industrial Land and Factory; Expected Gain of Approx. HK$46.54M
NewTimeSpace News: Wang On Group Limited (stock code: 1222) and Wai Yuen Tong Medicine Holdings Limited (stock code: 0897) jointly announced on July 16 the disclosure of a major transaction regarding the sale of a target company.
On July 16, 2026, the Seller (an indirect wholly-owned subsidiary of Wai Yuen Tong) entered into a sale and purchase agreement with the Buyer, conditionally agreeing to sell, and the Buyer conditionally agreeing to purchase, the entire issued share capital of the target company holding the property. The consideration for the sale is RMB 99,800,000 (equivalent to approximately HK$115,440,000). Upon completion, the Wang On Group and Wai Yuen Tong Group will no longer hold any shares in the target company.
As the highest applicable percentage ratio for each of Wang On and Wai Yuen Tong in respect of the sale and purchase agreement and the transactions contemplated thereunder exceeds 25% but is below 75%, entering into the sale and purchase agreement constitutes a major transaction for each of Wang On and Wai Yuen Tong, and is subject to the reporting, announcement, circular and shareholders' approval requirements under Chapter 14 of the Listing Rules.
Wang On will convene an extraordinary general meeting to consider and, if thought fit, approve the sale and purchase agreement and the transactions contemplated thereunder. The circular is expected to be despatched on or before August 24, 2026. Wai Yuen Tong has received written approval from Rich Time Strategy Limited, an indirect wholly-owned subsidiary of Wang On (holding 810,322,940 Wai Yuen Tong shares, representing approximately 72.71%), to approve the sale and purchase agreement and the transactions contemplated thereunder under Rule 14.44 of the Listing Rules, in lieu of a resolution to be passed at a Wai Yuen Tong general meeting.
The consideration will be paid in two instalments: the first instalment of RMB 10,000,000 within five business days after signing the agreement to the notary office's escrow account; the second instalment of RMB 89,800,000 upon obtaining shareholders' approval. Upon completion of the share transfer registration, RMB 3,000,000 will be retained in the notary office's escrow account as a retention amount for two years.
The target company is Guanzun (Shenzhen) Commercial & Trading Development Co., Ltd., the registered, legal and beneficial owner of the property. The property is located at No. 6, 1st Road, Daj Industrial Zone, Pingshan Street, Pingshan District, Shenzhen, comprising a site with an area of approximately 11,026.83 sq.m. (Plot No. G12204-0252) and one factory building and two dormitory buildings. According to the preliminary indicative valuation by an independent valuer, the market value of the property as of May 31, 2026 was approximately RMB 99,300,000.
The unaudited net asset value of the target company as of June 30, 2026 was approximately RMB 46,300,000 (equivalent to approximately HK$53,560,000). Upon completion, after review and confirmation by the respective auditors, both the Wang On Group and Wai Yuen Tong Group are expected to record a gain (after deducting relevant expenses) of approximately HK$46,540,000. The Wai Yuen Tong Group intends to apply the net proceeds from the sale for general working capital and operating purposes.
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