Jinke Property
Sunac Subsidiary to Transfer a 11% Stake in Jinke Properties to Related Party of Red Star Macalline
Tue 04/14/2020 17:06 PM
Relevant Documents:
Brief report on ownership changes
Release of pledged shares
Ownership structure detailed in FY2019 annual
Shenzhen-listed Jinke Properties announced that its significant shareholder Tianjin Jujin Property Management Co. (天津聚金物业管理有限公司), controlled by Sunac China, on Monday, April 13, entered into a share transfer agreement with a subsidiary of Red Star Furniture Group Co. Ltd., which is ultimately controlled by Che Jianxing, the de facto controller of Hong Kong-listed Red Star Macalline, about transferring 587 million common shares, or 11%, of Jinke Properties for a total of RMB 4.699 billion ($666.6 million) in cash.
The share transfer will not result in a change of control, according to the announcements.
Upon completion, Tianjin Jujin, together with its parties acting in concert, will own a total of 18.35% in Jinke, whereas Red Star and its subsidiary will together own 11.04%.
Red Star said the investment was made based on its long-term understanding of Jinke and its confidence in the company’s development strategy and management team.
The transfer price was RMB 8 apiece with adjustment mechanism upon Jinke’s dividend declaration. Stock of Jinke closed at RMB 8.26 per share on Shenzhen Stock Exchange on Tuesday, April 14.
Corresponding funds will be wired to the seller through bank transfer, including:
Jinke Property’s capital structure is as follows:
Brief report on ownership changes
Release of pledged shares
Ownership structure detailed in FY2019 annual
Shenzhen-listed Jinke Properties announced that its significant shareholder Tianjin Jujin Property Management Co. (天津聚金物业管理有限公司), controlled by Sunac China, on Monday, April 13, entered into a share transfer agreement with a subsidiary of Red Star Furniture Group Co. Ltd., which is ultimately controlled by Che Jianxing, the de facto controller of Hong Kong-listed Red Star Macalline, about transferring 587 million common shares, or 11%, of Jinke Properties for a total of RMB 4.699 billion ($666.6 million) in cash.
The share transfer will not result in a change of control, according to the announcements.
Upon completion, Tianjin Jujin, together with its parties acting in concert, will own a total of 18.35% in Jinke, whereas Red Star and its subsidiary will together own 11.04%.
Red Star said the investment was made based on its long-term understanding of Jinke and its confidence in the company’s development strategy and management team.
The transfer price was RMB 8 apiece with adjustment mechanism upon Jinke’s dividend declaration. Stock of Jinke closed at RMB 8.26 per share on Shenzhen Stock Exchange on Tuesday, April 14.
Corresponding funds will be wired to the seller through bank transfer, including:
- a security deposit of RMB 700 million and the first installment of RMB 300 million to be remitted within three days of signing the contract;
- a second installment of RMB 1.349 billion to be remitted on or before the share transfer date, May 18; and
- the last installment of RMB 2.349 billion of funds to be remitted in the next eight business days.
Jinke Property’s capital structure is as follows:
(Click HERE to enlarge the image)
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