GuocoLand (China), the wholly-owned subsidiary of GuocoLand, has entered into an equity transfer agreement with Beijing Wennuan Shiguang Technology Development (WNSG) on April 15.
Under the agreement, GuocoLand (China) will transfer 100% of its equity interest in Beijing Jiang Sheng Property Development (BJJS) to WNSG for a consideration of RMB3.0 million ($613,517) and will be paid in cash.
The consideration is arrived at on a willing-buyer and willing-seller basis after arms-length negotiations.
The amount also took into account BJJS’s net tangible assets of RMB12,600.
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Following the completion of the transaction, BJJS, which was primarily in the business of property development, will no longer be a subsidiary of GuocoLand.
BJJS, as a subsidiary of GuocoLand, had completed and sold all of the units in its residential project, West End Point in Beijing. It still owns residual assets in the said residential project and has been inactive.
The transaction is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the GuocoLand Group for the financial year ending June 30.
Shares in GuocoLand closed flat at $1.71 on April 15.
