Examples of Disposal Company in a sentence
Upon Completion, the Company will not have any interests in the Disposal Company and the Disposal Company will cease to be a subsidiary of the Company.
As at the date of this announcement, the Disposal Company was owned as to 100% by the Vendor.
On 27 March 2024 (after trading hours of the Stock Exchange), the Vendor, being a wholly- owned subsidiary of the Company, and the Purchaser, entered into the Share Transfer Agreement, pursuant to which the Vendor has conditionally agreed to sell and the Purchaser has conditionally agreed to acquire the Disposal Share, representing the total number of issued shares in the Disposal Company, at the aggregate Consideration of HK$10,000, in accordance with the terms of the Share Transfer Agreement.
The Disposal Company was in a net liability position as at 31 March 2023 and this position is expected to remain at the same level upon settlement of the legal case amounted to RMB296,304,000 (equivalent to approximately HK$323,920,000), when Hengxiang Real Estate will transfer the properties held under the Anshan Coastal Xintiandi Project for settlement purposes as disclosed under the section headed “Information on the Disposal Company” in this announcement.
As the Disposal Company will not have any operations subsequent to the transfer of the Anshan Coastal Xintiandi Project for settlement of the legal case and the completion of the title transfer process of the Beijing Bay Project, its net liability position is expected to worsen when it continues to incur day-to-day expenses.
Such unaudited gain is estimated based on the Consideration of HK$10,000 less the unaudited net liability value of the Disposal Company (net of the unaudited value of non-controlling interests) of approximately HK$20,401,000 as at 31 March 2023, which is arrived at by deducting the unaudited value of non-controlling interests in the amount of approximately HK$88,372,000 from the unaudited net liability value of the Disposal Company of approximately HK$108,773,000, and estimated transaction cost.
The actual gain/loss on the Disposal may be different from the above and will be determined based on the final financial position of the Disposal Company on the date of Completion.
The net liability position of the Disposal Company is mainly attributable to the trade and other payables in the amount of approximately HK$368 million and tax payable in the amount of approximately HK$37.6 million as at 31 March 2023.
Given the current financial position and the future prospects of the Disposal Company, the Board is of the view that the Disposal will enable the Group to realise its investment in the Disposal Company and improve the balance sheet of the Group as the Disposal Company will cease to be a subsidiary of the Group and the assets and liabilities of the Disposal Company will no longer be consolidated into the consolidated financial statements of the Group.
The Disposal Company is a company incorporated in Hong Kong with limited liability and as at the date of this announcement and immediately prior to Completion, an indirect wholly-owned subsidiary of the Company.