Building Platform to Expand its Green Property Development Business
HONG KONG, June 18, 2013 /PRNewswire/ -- Landsea Group Co. Ltd.("Landsea" or the "Group") today announced that the Group has agreed to acquire a majority stake in Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech" or the "Listed Company", stock code: 00106) through a share purchase agreement with the controlling shareholder of Shenzhen High-Tech.
Landsea's wholly-owned subsidiary, Greensheid Corporation, has entered into a share purchase agreement with Thing On Group Limited to purchase a total of 1,260,000,000 shares in Shenzhen High-Tech, which make up approximately 63.4% of the entire issued share capital of the Listed Company. The price of HK$0.685 per sale share represents a premium of approximately 67.1% to the closing price of HK$0.41 per share of Shenzhen High-Tech on the last trading day on June 7, 2013.
Pursuant to the Takeovers Code, Landsea, upon completion of the agreement, will be required to make a mandatory unconditional cash offer (the "Offer") for all the issued shares of Shenzhen High-Tech not already owned and/or agreed to be acquired by the Group and/or parties acting in concert with it. Under the terms of the Offer, holders of each Offer share will be entitled to HK$0.685 in cash, which is the same price payable by Landsea under the share purchase agreement.
Following the completion of the transaction, the Listed Company will be the only listed platform under Landsea engaging in green residential property development business. Landsea intends to continue running the Listed Company's existing property investment, development and management businesses in Hong Kong and the PRC. Landsea will also actively support the Listed Company's future investments in new projects when suitable opportunities arise, to ramp up its portfolio size, asset base and brand image by integrating Landsea's financial, human and technological resources into the Listed Company's operations. Subject to relevant laws and regulations, Landsea will further consider injecting high-quality assets to enhance the development capability of the Listed Company.
Mr. Tian Ming, Chairman of Landsea said, "I am delighted to announce this transformational move which marks Landsea's entry into the international capital market. As a leading enterprise engaged in property development and operations with green technology, the acquisition will create a business platform for the Group to further expand its business. Combining the efforts from all related parties, we expect the Listed Company to develop as a leading listed property company in Hong Kong with a unique positioning."
Established in 2001, Landsea is currently one of the top 100 PRC enterprises in real estate, and a leading enterprise engaged in property development and operation with green technology. Landsea has implemented a long-term strategy of differentiation using green technology in buildings. While focused on residential property development as its principal business, Landsea is also actively engaged in new businesses including green aged care, green construction technology and green industries' investments (company website: www.landsea.cn). By 31 May 2013, the consolidated total assets of the Group exceeded RMB15 billion (unaudited).
The property business of Landsea currently covers major cities including Nanjing, Shanghai, Hangzhou, Suzhou, Wuhan, Chengdu, Wuxi, Changzhou, Shaoxing, etc, with more than 30 on-going and completed property projects covering a total development area of approximately 5.4 million square meters. Landsea, with due consideration of factors including market dynamics, also eyes entering the property market in Northern and Southern parts of the PRC and the overseas market as well.
Landsea has honed its unique organizational capability and product hallmarks by marrying its globally leading technology with its experience. Landsea provides environmentally-friendly, comfortable and energy saving residences which are beneficial to health and welcomed and recognised by its customers. Thirteen residential projects of Landsea were awarded the Green Three-Star Identification, the highest level of national green property design certification in the PRC. By end 2012, Landsea's residential projects, the sole recipients of the Green Three-Star Identification, accounted for 16% of the total number of residential projects certified under the Scheme in the PRC.
Landsea is the founding member of China Green Building Council, and also a member of the German Sustainable Building Council and the US Green Building Council. Landsea has won the China's Top 100 Green Companies title and the Chinese real estate Golden Brick Prize - Annual Green Estate Award three times, and has also been awarded multiple national accolades including the National Science and Technology Award for Excellent Homes, Huaxia Building Science and Technology Award (First Prize) and the Guangsha Award. Two of Landsea's projects were regarded as technological demonstration projects of the Ministry of Housing and Urban-Rural Development of PRC. With 130 patents on construction technology, Landsea distinguishes itself with unique technological advances in green construction, supported by its research center, Grade A design center, Shanghai Green Construction Technology Company and European Construction Technology Company, all dedicated to green technology. Landsea is widely recognized as one of the leading developers of green properties.
Mr. Tian is the Chairman and the President of the Group, and also the founder and the largest shareholder of Landsea. Mr. Tian is widely recognized by industry peers as a respectable pioneer in green property industry, and has led Landsea to its current prominence from the start with only an asset base of RMB10 million.
Halcyon Capital Limited is the sole financial adviser to Landsea in this transaction.
