CONCH VENTURE (00586) has announced that it was informed by Anhui CONCH Group Co., Ltd. (CONCH Group) that the group is considering a potential acquisition of additional shares in the company. Following the completion of this potential acquisition, CONCH Group would directly and indirectly hold approximately 21% of the company's issued share capital. The acquisition, subject to approval from relevant government authorities, will be conducted on the open market at prevailing market prices and at times deemed appropriate by CONCH Group, taking into account the company's market price and overall market conditions.
If the potential acquisition is completed, (i) CONCH Group, together with its subsidiaries and persons acting in concert, will hold in aggregate less than 30% of the voting rights attached to the company's total issued shares; (ii) CONCH Group is expected to reconstitute the board of directors of the company; and (iii) the company will be regarded as a subsidiary of CONCH Group, and its financial results will be consolidated into the group's financial statements.
As of the date of this announcement, CONCH Group, directly and indirectly through Anhui CONCH Cement Co., Ltd. (a company incorporated in China whose A-shares are listed on the Shanghai Stock Exchange and H-shares are listed on the Hong Kong Stock Exchange, and in which CONCH Group holds a 36.40% stake), holds approximately 10.39% of the issued share capital of CONCH VENTURE and is its single largest shareholder. The State-owned Assets Supervision and Administration Commission of Anhui Province indirectly holds a 51% stake in CONCH Group, while the group holds the remaining 49%. CONCH Group is primarily engaged in asset operation, investment, financing, property rights trading, import and export trade, and the production and sales of building materials, chemical products, electronic instruments, and general machinery equipment.
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