Freeman Fin (HKG:0279) unit Allied Weli to be reorganised

   Date:2012-05-17

Freeman Financial Corporation Limited (HKG:0279) (FFCL) announced that its wholly-owned subsidiary, Freeman Financial Services Limited (FFSL), received a letter from Allied Weli Development Limited (formerly known as Hennabun Capital Group Limited) containing information about a reorganization.

Prior to the reorganization, FFSL holds 32.26% shareholding interest in Allied Weli; FFCL holds 5.26% shareholding interest in HEC Capital Limited (HEC); and HEC indirectly holds 67.74% shareholding interest in Allied Weli and is the largest single shareholder of Allied Weli.

The primary objective of the reorganization is to streamline the combined group structure of Allied Weli and HEC to enable them to be better positioned for future expansion and development. The reorganization also provides Allied Weli and HEC more options and flexibilities if and when Allied Weli and HEC decide to list all or parts of their combined group in a public floatation.

The reorganization is achieved by Allied Weli issuing certain amount of its new shares to a wholly-owned subsidiary of HEC in exchange for the same amount of HEC's new shares. The shares of Allied Weli held by FFSL will be cancelled and FFSL will in turn receive the HEC new shares.

Since the shares of HEC and Allied Weli are roughly equal in value, the interest of FFSL will not be altered or adversely affected. FFSL will instead hold shares in the merged entity (i.e. combined group of Allied Weli and HEC) which will have substantially better prospects with broadened appeal than before.

Upon the completion of the reorganization, HEC will hold an effective 100% shareholding interest in Allied Weli.

The FFCL and its subsidiaries will own 27.7% shareholding interest in HEC and will not have any direct shareholding in Allied Weli upon completion of the reorganization.

Allied Weli's subsidiaries are principally engaged in security brokerage, commodity trading, money lending, margin financing and corporate finance advisory as well as proprietary trading and direct investment.

 

Source:chinesestock.org

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