CHUN WO ANNOUNCES THE ACQUISITION OF CCCC DEVELOPMENT LIMITED AT A CONSIDERATION OF HKD660 MILLION
(Hong Kong, 5 November 2015) -Chun Wo Development Holdings Limited (‘Chun Wo’ or ‘the Group’) (stock code: 00711) Leading Top Investments Limited (‘Leading Top’), its direct wholly-owned subsidiary, has entered into a Sale and Purchase agreement with China Chengjian Investment Limited (‘China Chengjian Investment’) to acquire the entire issued share capital of CCCC Development Limited (‘CCCC Development’), a wholly-owned subsidiary of China Chengjian Investment at a consideration of HKD660 million which will be paid in cash.
Mr. Xu Jianhua, Co-Chairman of Chun Wo, said, ‘Our strategic cooperation with China’s key construction companies has begun to bear fruits. The acquisition will extend the Group’s operation arm to China and overseas, further implementing the strategic goal of ‘Entering China, and Going Global’. CCCC Fourth and CCC Thirteenth possess high level of qualifications in domestic infrastructure and building construction which will benefit the Group’s investment in national major infrastructure construction projects and the involvement in large-scale overseas projects under the ‘One Belt, One Road’ strategy.
CCCC Fourth’s principal activity includes being the main contractor of building construction, government and public facility construction, water and electricity construction, mechanical and electricity engineering, building decoration and inner decoration and other building related business. Whereas CCCC Thirteenth’s principal activity includes being the main contractor of building construction, government and public facility construction, building decoration and inner decoration and other building related business.
Leveraging on CCCC Holding’s network, the acquisition will allow Chun Wo to further develop and expand its existing businesses, including: (i) the municipal infrastructure construction business in the PRC, in particular commercial opportunities under the public-private partnership model; and (ii) large-scale development under the PRC’s ‘One Belt, One Road’ strategy.
By combining the Group’s own expertise, skills and experience in construction and property development with that of CCCC Fourth and CCCC Thirteenth, Chun Wo will become more adept at handling large-scale property development projects in Hong Kong, and will also open the way to business opportunities within the property management market in the PRC.
Chun Wo acquires CCCC Development Ltd for HKD660 MILLION