China Hanking Holdings Limited (Stock Code: 03788) announced multiple connected transactions involving its subsidiaries and executive director. The measures include acquiring the remaining equity in Cygnet Gold, increasing capital in Hanking Gold, and redeeming share options in Hanking Australia.
China Hanking Holdings Limited stated that its subsidiary Watkins Gold will acquire a combined 6.63% stake in Cygnet Gold—2.75% from entities controlled by Dr. Qiu (an executive director) and 3.88% from minority shareholders—at a total cost of AUD16.60 million. Accounting for prior investments, Hanking Gold will ultimately hold full ownership in Cygnet Gold, which operates a gold project with approximately 2.06 million ounces in resources, with an overall consideration of around AUD60.31 million.
Separately, Hanking Gold will issue new shares to both Dr. Qiu’s controlled entities and certain minority investors at HKD2.62 per share. After the subscription, Hanking Gold's total issued shares will rise from approximately 2.52 billion to about 2.54 billion, diluting the Group’s ownership interest from 91.19% to 90.44%.
Regarding share options, Hanking Australia intends to redeem and cancel all 11,250,000 outstanding options, including 4,200,000 held by Dr. Qiu. The redemption price for Dr. Qiu’s options is AUD1.91 per option, totaling around AUD8.02 million.
China Hanking Holdings Limited noted that these transactions are subject to reporting and announcement requirements under Chapter 14A of the Listing Rules, with no requirement for independent shareholders’ approval given that the highest applicable percentage ratio is below 5%. The company also stated that they do not anticipate any significant financial impact on the Group from these transactions, and further advised shareholders and potential investors to exercise caution, as the completion of these steps may or may not proceed.
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