CGII HLDGS has agreed to assign three long-overdue loans, together with their ancillary benefits, to its controlling shareholder Tangde Gas Co., Limited for a cash consideration of RMB118.00 million (approximately HK$133.81 million).
The loans, advanced in late-2020 to three independent Hong Kong borrowers for RMB118.00 million in aggregate, have remained unpaid since their maturity on 30 December 2020. Despite obtaining High Court judgments in July 2023, the company has recovered neither principal nor interest, and fully impaired the receivables in its 2020 accounts. Accrued interest of about RMB12.59 million is excluded from the transfer price due to low recoverability.
Upon completion, CGII HLDGS will book the full RMB118.00 million as an increase in equity, boosting net assets and cash. Net proceeds of roughly RMB117.00 million will be deployed as general working capital—around 80% for utilities consumption and 20% for raw-material procurement—by end-2027.
Because Tangde Gas owns 468.10 million shares, or 39.01% of CGII HLDGS, the deal constitutes both a discloseable and connected transaction under Hong Kong listing rules. Independent shareholders will vote on the proposal at an extraordinary general meeting scheduled for 27 May 2026; Tangde Gas and its associates will abstain from voting.
If approved, completion is expected within seven days after all regulatory and shareholder conditions are met, with payment settled in cash on the closing date.
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