Gansu Guofang Industry & Trade Co., Ltd. and Shanshan Commercial Group Co., Ltd. cancelled the acquisition of remaining 29% stake in Gansu Shanshan Outlet Shopping Plaza Co., Ltd. Gansu Guofang Industry & Trade Co., Ltd.
August 28, 2020
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Gansu Guofang Industry & Trade (Group) Co., Ltd. (SHSE:601086) and Shanshan Commercial Group Co., Ltd. signed equity transfer agreement to acquire remaining 29% stake in Gansu Shanshan Outlet Shopping Plaza Co., Ltd. from Ningbo Wansheng Investment Co., Ltd. for approximately CNY 140 million on August 29, 2019. As per the terms, CNY 85 million will be paid after signing the respective agreement and the extant CNY 57 million will be paid after completion of change of registry procedures. As of December 31, 2018, Gansu Shanshan Outlet reported total assets of CNY 76.5 million, net assets of CNY 74.2 million, operating revenue of CNY 0 and net loss of CNY 0.27 million. The transaction has been approved by the 20th meeting of the 4th directorate of Gansu Guofang Industry & Trade (Group) and there is no need for approval from it's shareholders’ meeting.
As on June 12, 2020, a supplemental agreement was signed. As per new supplemental agreement Gansu Guofang Industry & Trade (Group) Co., Ltd. and Shanshan Commercial Group Co., Ltd. will acquire the remaining 29% stake in Gansu Shanshan Outlet Shopping Plaza Co., Ltd. Gansu Guofang Industry & Trade (Group) Co., Ltd. for CNY 97.02 million. A payment of CNY 85 million has already made and remaining CNY 12.02 million shall be paid within one month from completion. Post-completion, both Gansu Guofang and Shanshan Commercial Group will own 50% stake in Gansu Shanshan Outlet Shopping Plaza. At the sixth meeting of the fifth board of directors approved the proposal on signing the supplemental equity transfer agreement and the progress of foreign investment. Change of registry procedures should be completed within 15 days since signing of the respective agreement.
Gansu Guofang Industry & Trade (Group) Co., Ltd. and Shanshan Commercial Group Co., Ltd. cancelled the acquisition of remaining 29% stake in Gansu Shanshan Outlet Shopping Plaza Co., Ltd. Gansu Guofang Industry & Trade (Group) Co., Ltd. on August 29, 2020.
Gansu Guofang Industry & Trade Group Co Ltd is a China-based company principally involved in the operation of department stores, supplemented by the chain of retail business of supermarkets, electrical appliances. The Company operates through two main segments. The Retail Business segment is mainly engaged in the combination of operating department stores, supermarkets and electrical appliances in large-scale malls, while engaged in the single-store operation mode of operation of the supermarket business. The Other Business segment is primarily involved in the business of real estate leasing.
Gansu Guofang Industry & Trade Co., Ltd. and Shanshan Commercial Group Co., Ltd. cancelled the acquisition of remaining 29% stake in Gansu Shanshan Outlet Shopping Plaza Co., Ltd. Gansu Guofang Industry & Trade Co., Ltd.