Ming Pao Enterprise Corporation Limited (MPE), Ming Pao Holdings Limited (MPH) and Ming Pao Finance Limited (MPF), all being wholly-owned subsidiaries of the Company, propose to undertake an internal re-organisation exercise in which MPH will acquire 10 ordinary shares of USD1.00 each in MPF, representing 100% of the entire issued and paid-up capital of MPF, from MPE for a consideration of USD10.00 (the Internal Re-organisation) effective on 1 March 2011.
The principal activities of MPF is holding publishing titles and trademarks of the Company and its subsidiaries (the Group) worldwide and MPF is currently directly owned by MPE. After completion of the Internal Re-organisation, MPF becomes a wholly-owned subsidiary of MPH, which is a direct wholly-owned subsidiary of MPE.
The Internal Re-organisation will enable the Group to streamline the holding structure of the various entities held by MPE, in order to provide greater management flexibility to MPE in managing its operations.
The Internal Re-organisation will be satisfied wholly in cash and should not have any impact on the Groups earnings and net tangible assets for the financial year ending 31 March 2011.
The Directors of the Company are of the opinion that the Internal Re-organisation is in the best interests of the Company and the shareholders as a whole.
This announcement is dated 1 March 2011.