Chinese real estate platform SouFun Holdings Limited, known as Fang, has provided an update on its proposed controlling stake in Chongqing Wanli New Energy a company listed on the Shanghai Stock Exchange (SSE), including the sale of its assets in a restructure.
Fang says Wanli has now submitted its responses to the SSE's inquiry letter regarding its restructure dated January 28, 2016 saying it believes all matters raised have been addressed.
Wanli also confirms it will respond in a timely manner should the SSE raise any additional inquiries in the future.
Restructuring remains subject to the requisite internal approvals of the relevant parties and regulatory clearance, including by the China Securities Regulatory Commission and other applicable regulatory authorities.
Fang says there is no assurance that these approvals or regulatory clearance will be obtained within an expected time frame, or at all.
For further details of the restructuring and the full text of the responses, please refer to public announcements made by Wanli, available at the official website of the SSE.
As RTT News explains "SouFun has agreed to subscribe through each of the Fang Subsidiaries for new shares of Wanli at a price of RMB23.87 per share.
The subscription shares will be calculated based on a final valuation of the Fang Assets by an independent asset appraisal company. The current preliminary valuation of the Fang Assets is RMB16.18 billion.
Wanli has also entered into an asset sale agreement with Shenzhen Nan Fang Tong Zheng Investment Co., Ltd., the controlling shareholder of Wanli, and Xicheng Liu, pursuant to which Wanli has agreed to sell all of its existing non-cash assets and liabilities to the Asset Sale Buyer and maintain at least RMB0.7 billion cash in Wanli.
To support the future business growth following the restructuring, Wanli has concurrently entered into share subscription agreements with certain investors.
Under the deal, Wanli has agreed to issue to the share placement investors new shares of Wanli at a price of RMB23.87 per share for a total consideration of up to RMB3.16 billion, which is subject to the final valuation of the Fang Assets."
Source: RTT News.