Star CM to Exit Minority Investment in Shanghai Binqiao Enterprise Management
Star CM (HKG:6698) will exit its minority investment in Shanghai Binqiao Enterprise Management in exchange for complete ownership in Shanghai Xingkongshui'an Enterprise Development, according to a Tuesday filing with the Hong Kong bourse.The firm entered an agreement to sell its 17.59% stake in Shanghai Binqiao for an implied value of 193.5 million yuan. The consideration will be satisfied via the entire equity interest in SH Xingkongshui'an plus a cash payment of 237,000 yuan on completion.As part of the transaction, SH Xingkongshui'an will also assume a loan of around 266.59 million yuan owed to Star CM, which will mostly be offset against a 266.13 million yuan loan receivable.The remaining 466,000 yuan will be settled in cash.Star CM said the restructuring will help the firm gain direct ownership of a property development project in Shanghai's Yangpu district.
