Mitsumaru East Kit Holdings (HKG:2358) announced that it has agreed to sell all the issued share capital of in Kitking Global Limited at the consideration of HK$1 million and has also agreed to waive all the outstanding shareholder’s loan owing by the Kitking Group to the Remaining Group as at completion. The disposal is expected to result in a gain of approximately HK$28.4 million for Mitsumaru. The proceeds from the disposal will be applied as general working capital of Mitsumaru.
The Kitking Group is engaged in the design of chassis of colour televisions, assembly of colour televisions and trading of components related to colour televisions. Following the disposal, the Remaining Group will cease to engage in television related business and will continue with its other existing business in the design, assembly and installation of water meters and provision of related services. In conjunction with the formulation of its resumption plan for its shares, Mitsumaru will also seek for other potential acquisition targets to strengthen its business, operations and assets.
The directors of Mitsumaru consider it is beneficial to Mitsumaru to dispose of this loss making business in order to alleviate the pressure on Mitsumaru’s future working capital requirements and reallocate its resources to the other business opportunities which may have prospects in generating better return for Mitsumaru.
Trading in the shares of Mitsumaru on the Stock Exchange has been suspended with effect from 14 February 2008 and will remain suspended until further notice. Mitsumaru said its directors are actively pursuing potential acquisition targets for it which would have a sufficient level of operations and tangible assets of sufficient value to meet the resumption conditions set by the Stock Exchange. The directors have identified certain potential acquisition targets, one of which is related to design, assembly and trading of televisions. Some preliminary discussions have taken place but no terms and conditions have been agreed and such acquisition may or may not materalise.
Source:chinesestock.org