| Subject | CHINA OUHUA WINERY HOLDINGS LIMITED ("CHINA OUHUA" OR "THE COMPANY")
ACQUISITION BY YANTAI FAZENDA OUHUA WINERY CO., LTD, A SUBSIDIARY OF CHINA OUHUA WINERY HOLDINGS LIMITED, OF ALL THAT LAND AND BUILDINGS LOCATED AT NO. 3, WOLONG NORTH ROAD, YANTAI CITY FOR A TOTAL CASH CONSIDERATION OF RMB132,000,000 ("THE ACQUISITION") |
| Description | Further to the announcement of 18 December 2013 and the letter from Bursa Malaysia Securities Berhad ("Bursa Securities") dated 19 December 2013 in relation to the Acquisition, the Board of Director of China Ouhua wishes to provide the following additional information:-
Unless otherwise stated, defined terms used in this announcement shall carry the same meanings as defined in the Announcement dated 18 December 2013.
1. The capital of Yantai Fazenda Ouhua Winery Co., Ltd ( Yantai Ouhua ) is USD9,000,000 and its major shareholder is China Ouhua Winery Holdings Limited which holds 95% of the total issued and paid-up share capital of Yantai Ouhua.
2. The Property is state- owned and no valuation on this property was carried out.
3. The market value of similar properties of the same size and equivalent building structure in the vicinity area as determined by the Yantai State Government is approximately RMB145,000,000. The purchase consideration of RMB132,000,000 was arrived at after negotiation with the PRC Government and taking into consideration Yantai Ouhuas good past tax and rental payment records.
4. The acquired land is registered as state owned property. After the Acquisition, the Government will convert the land use category to Commercial and Industrial.
5. The submission of the application for the transfer of the land ownership to the relevant authority(ies) must be completed within 30 days from the date of signing of the SPA. The SPA provides a timeframe of 4 months from the Second Payment to complete the Acquisition in the event of unforeseen circumstances.
6. According to the PRC Governments plan, the Southern area of Yantai City is to become the second city center of Yantai City. Two business complexes of approximately 100,000 square meters have been built in the vicinity area of the Property. All these are expected to bring positive growth to the Southern Area of Yantai.
This announcement is dated 20 December 2013. |
| Query Letter Contents | We refer to the Company's announcement dated 18 December 2013, in respect of
the aforesaid matter.
In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa
Securities") with the following additional information for public release:-
1. Details of Yantai Fazenda Ouhua Winery Co., Ltd, including its issued and
paid-up share capital and major shareholders together with their respective
shareholdings.
2. Whether any valuation was carried out on the Property. If yes, the name of
the independent registered valuer, date and method of valuation and
quantification of the market value. To also make available the valuation report
for inspection, if any.
3. Detail basis to arrive at the purchase consideration of RMB132,000,000
(approximately RM70.4 million), including the basis to determine the market
value.
4. The category use of the land.
5. To clarify whether the Acquisition is expected to be completed within 30
days from the date of signing the SPA or within 4 months from the Second
Payment.
6. Further elaboration that the Property and the Southern area of Yantai City
is a "high growth" industrial region.
Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.
Yours faithfully
HENG TECK HENG
Head, Issuers
Listing Division
Regulation
IJ/TEK
c.c:- General Manager and Head, Market Surveillance, Securities Commission
(via fax) |