Prosperity Minerals Holdings Ltd Proposed Disposal of Hangzhou Real Estate Project (8526D)
02 Mai 2013 - 10:31AM
UK Regulatory
TIDMPMHL
RNS Number : 8526D
Prosperity Minerals Holdings Ltd
02 May 2013
2 May 2013
Prosperity Minerals Holdings Limited
("Prosperity" or "the Company")
Proposed Disposal of Hangzhou Real Estate Project
Prosperity Minerals Holdings Limited ("PMHL.L"), an iron ore
trading business and real estate owner/developer in the People's
Republic of China ("PRC"), is pleased to announce that it has
conditionally agreed to dispose of its 50% interest in a commercial
property development site in Hangzhou (the "Hangzhou Project"), the
capital of Zhejiang Province in Eastern China, to Hangzhou Xihu Tea
Market Company Limited ("Hangzhou Xihu"). The prospective
consideration for the disposal is RMB 221.8 million (USD 36
million), which would result in a pre-tax profit on disposal of
approximately RMB 24 million (USD 3.9 million).
The Company acquired its 50% interest in the Hangzhou Project in
March 2011 and on the 6 February 2013, announced plans to increase
this to 60% for a consideration of RMB 40 million (USD 6.4
million), with a view to taking the lead in the development. The
proposed disposal represents a reasonable premium to this February
value and, since construction, which had originally been due to
start in 2012, has not commenced because the construction permit
has been delayed, Prosperity believes it is prudent to realise cash
and profit from the disposal which it can apply to other more
attractive prospective projects and working capital.
Under the terms of the Letter of Intent regarding the proposed
disposal, Hangzhou Xihu will pay the Consideration as follows:
(i) a deposit of RMB 10 million (the "Deposit") is payable
within 3 business days of signing of the Letter of Intent;
(ii) 30% of the consideration (being approximately RMB 66.5
million) is payable within 3 business days of signing the sale and
purchase agreement for the disposal, of which the Deposit will be
applied as part payment; and
(iii) the remaining balance is payable within 3 business days
after the relevant authorities in the PRC have approved the
Disposal.
The Deposit is non-refundable if Hangzhou Xihu fails to complete
the disposal for reasons other than unsatisfactory due diligence on
the Hangzhou Project. In the event that Prosperity fails to
complete the disposal, it will refund the Deposit and pay an
additional RMB 10 million to Hangzhou Xihu.
Prosperity Minerals Holdings Limited
Patrick Li
Neelke Kruger-Logan +852 3187 2618
Citigate Dewe Rogerson
Martin Jackson
+44 (0) 20 7638
Priscilla Garcia 9571
Daniel Stewart & Company plc
Corporate Finance: Paul Shackleton,
Antony Legge, Emma Earl
+44 (0) 20 7776
Corporate Broking: Martin Lampshire 6550
Notes to Editors:
Prosperity (AIM: PMHL) is:
- an iron ore trading business serving the PRC;
- a specialised real estate owner and developer in the same
market; and
- an investor in two cement plants, also in the PRC.
Prosperity's iron ore trading business has been operating since
1992 and sources iron ore, for shipment and use in the PRC, from
major international iron ore producers in South Africa, Brazil,
Australia and South East Asia, Thailand and Malaysia in particular.
The majority of the Company's iron ore is sold to large steel
manufacturers in the PRC. In the fiscal years ended 31 March 2011
and 2012, Prosperity shipped 6.3 million tonnes and 4.8 million
tonnes of iron ore respectively.
In December 2010, Prosperity acquired a 35% effective interest
in United Goalink Limited (UGL), a Brazilian mining operation which
owns approximately 600 square kilometres of exploration rights and
3 square kilometres of mining concession in the State of Ceara. In
the year ended 31 March 2012, UGL shipped 218,808 tonnes of iron
ore (which is included in the above tally).
Prosperity has operated a real estate investment and development
division since February 2010 which is focused on creating an
attractive portfolio of PRC property and development assets. The
Company has also entered into a number of agreements with partners
to develop residential, commercial and recreational projects
principally in Guangzhou City and Changzhou City in the southern
PRC. Prosperity also owns an interest in an existing commercial
building in Guangzhou, which is a regional capital and is located
in the Pearl River Delta, the foremost economic zone in the
southern PRC.
Prosperity has two investment associates in the cement
manufacturing industry in the PRC. The Company holds a 33.06%
interest in Anhui Chaodong Cement Company Limited (ACC), located in
Anhui Province in the eastern PRC. The designed sellable production
capacity of ACC is 5.1 million tonnes of cement and clinker per
annum. In addition, Prosperity owns 16.11% of TCC Liaoning Cement
Company Limited which has a designed saleable production capacity
of 2 million tonnes of cement and clinker per annum. As announced
on 6 February 2013, this latter shareholding is the subject of a
conditional sale and purchase agreement.
The PRC is the World's second largest economy (behind the US)
and the biggest buyer of iron ore; it is also the largest producer
and consumer of cement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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