Yankuang Energy Group Company Limited announced that its board has approved a plan to spin off its non-wholly-owned subsidiary, Wubo Technology, for a separate listing on the Main Board of The Stock Exchange of Hong Kong.
Under the proposal, Wubo Technology will issue new H shares representing no more than 25.00% of its enlarged share capital, with an additional over-allotment option of up to 15.00% of the initial offer size. Exact issuance terms will be finalised following regulatory approvals and prevailing market conditions.
Yankuang Energy currently holds 45.00% of Wubo Technology’s equity and controls 51.32% of its voting rights through an entrustment arrangement. Post-listing, Wubo Technology will remain a consolidated but non-wholly-owned subsidiary, so Yankuang Energy’s financial statements will continue to include the unit’s results. Management expects the deemed disposal percentages to be below the 5.00% threshold stipulated in Chapter 14 of the Hong Kong Listing Rules, meaning the transaction will not be classified as a discloseable transaction.
Key objectives for the spin-off include sharper strategic focus for both entities, improved capital-raising flexibility, expanded investor reach, and enhanced talent retention through equity-based incentives. Proceeds from the new H-share offering are earmarked for core business expansion, R&D and industry-chain extension at Wubo Technology.
The transaction remains subject to approvals from Yankuang Energy shareholders, state-owned asset regulators in the PRC, the China Securities Regulatory Commission, and the Hong Kong Stock Exchange. In line with Practice Note 15, the company intends to grant assured entitlements of Wubo Technology shares exclusively to existing Yankuang Energy H-shareholders, pending shareholder endorsement.
The board cautions that there is no certainty on the timetable or completion of the spin-off and advises investors to exercise prudence when trading Yankuang Energy securities.
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