HKC (Holdings) (HKG:0190) announced that it agreed to dispose of the entire issued share capital of, and the loan advanced to, Treasure Island at an aggregate consideration of HK$254.61 million to Jinhai Trading.

The net proceeds of approximately HK$240.5 million from the disposal are intended to be used as working capital of HKC (Holdings). The estimated profit attributable to HKC (Holdings) as a result of the disposal would be approximately HK$129.6 million.

Treasure Island indirectly holds 65% share capital in Yangpu Water Supply Company Limited (Water Supply Company), whose principle business is management and maintenance of raw water supply facilities in Yangpu Economic Development Zone and provision of raw water supply services to the Yangpu Economic Development Zone.

HKC (Holdings) stated that the disposal enables it to realise a significant gain from its investment in the Water Supply Company and is in line with the its strategy of disposing non-core assets and fostering its expansion in property investment projects wholly or largely owned by it in fast growing cities in the PRC.

Jinhai Trading is indirectly controlled by its controlling shareholder, the Oei Family.

Source:chinesestock.org