Feiyang International Unit to Terminate Acquisition of 60% Stake in Zhejiang Feijiada Aviation Service

MT Newswires Live11-20 17:55

Feiyang International Holdings Group's (HKG:1901) indirect wholly owned subsidiary, Zhejiang Feiyang International Travel Group, agreed to terminate its purchase of 60% equity interest in Zhejiang Feijiada Aviation Service from Ningbo Zhenhang Business Service.

Under the termination agreemen, Zhejiang Feiyang International Travel Group will sell the 60% stake back to Ningbo Zhenhang Business for nearly 22.7 million yuan, a Tuesday Hong Kong bourse filing said.

The purchaser had agreed to purchase the 60% equity interest in the target in October 2022 for a little over 90.7 million yuan under certain performance conditions related to monthly guaranteed profit and sustainable expectations.

As the target failed to achieve the relevant financial performance, the purchaser entered into the termination agreement.

The consideration under the termination agreement equals the amount of dividend paid by the target to the purchaser and will therefore be returned, leaving no net proceeds from the disposal. As of now, the group expects to make a loss of 12 million yuan from the disposal.

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