CMIC moves houses within group
Red-chip Continental Mariner Investment Co (CMIC) has announced it has reached conditional agreements to swap assets within its group.
The company said its subsidiary, Regal Step Investments, would acquire one semi-detached house and 19 terraced houses in Beijing Garden Villas for US$11.9 million from Beijing Garden Villas - an indirect wholly owned subsidiary of CMIC's ultimate shareholder, China Poly Group Corp.
Another CMIC subsidiary Bassington Investments would acquire 37 apartments from Beijing Garden Villas for US$7.3 million. The price was a 14 per cent discount on the aggregate valuation of the properties at April 30.
The transaction will be financed by the internal resources of CMIC. China Poly holds a 52.95 per cent interest in CMIC.
Meanwhile, another agreement has been reached between Ringo Trading, an immediate holding company of China Poly and CMIC, and another subsidiary of China Poly, Equal Link Investments.
Equal Link will buy the entire 30 per cent interest of Shanghai Hong Qiao Friendship Shopping Centre from Ringo for 54.9 million yuan (about HK$51 million) plus a US$547,800 unsecured interest-free working capital loan granted to Shanghai Hong Qiao. Ringo guaranteed a profit after tax and extraordinary items for each of the three years ending December 1998 not less than 7.2 million yuan.