Acquisition of 50% equity interest in Shanghai Jinting Automobile ...
Acquisition of 50% equity interest in Shanghai Jinting Automobile ...
Acquisition of 50% equity interest in Shanghai Jinting Automobile ...
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Hong Kong Exchanges and Clear<strong>in</strong>g Limited and The Stock Exchange <strong>of</strong> Hong Kong Limited<br />
take no responsibility for the contents <strong>of</strong> this announcement, make no representation as to its<br />
accuracy or completeness and expressly disclaim any liability whatsoever for any loss<br />
howsoever aris<strong>in</strong>g from or <strong>in</strong> reliance upon the whole or any part <strong>of</strong> the contents <strong>of</strong> this<br />
announcement.<br />
[LOGO]<br />
Gold Peak Industries (Hold<strong>in</strong>gs) Limited<br />
(Incorporated <strong>in</strong> Hong Kong under the Companies Ord<strong>in</strong>ance)<br />
(Stock Code: 40)<br />
(Incorporated <strong>in</strong> Hong Kong under the Companies Ord<strong>in</strong>ance)<br />
(Stock Code: 40)<br />
MAJOR TRANSACTION<br />
ACQUISITION OF <strong>50%</strong> EQUITY INTEREST IN<br />
SHANGHAI JINTING AUTOMOBILE HARNESS LIMITED<br />
AND<br />
RESUMPTION OF TRADING<br />
The Board announces that on 29 June 2009, GP Auto entered <strong>in</strong>to the Agreement with the<br />
Vendor pursuant to which the Vendor had agreed to sell and GP Auto had agreed to purchase<br />
the Sale Interest, represent<strong>in</strong>g <strong>50%</strong> <strong>of</strong> the entire <strong>equity</strong> <strong><strong>in</strong>terest</strong> <strong>in</strong> <strong>Shanghai</strong> JAH, for a<br />
consideration <strong>of</strong> RMB80.1 million (approximately HK$90.9 million).<br />
The <strong>Acquisition</strong> constitutes a major transaction for the Company under Chapter 14 <strong>of</strong> the<br />
List<strong>in</strong>g Rules and is therefore subject to the Shareholders’ approval.<br />
A circular conta<strong>in</strong><strong>in</strong>g, among other th<strong>in</strong>gs, further details <strong>of</strong> the <strong>Acquisition</strong> and the notice <strong>of</strong><br />
extraord<strong>in</strong>ary general meet<strong>in</strong>g <strong>of</strong> the Company will be despatched to the Shareholders as soon<br />
as practicable.<br />
Deal<strong>in</strong>gs <strong>in</strong> the Shares on the Stock Exchange have been suspended at the request <strong>of</strong> the<br />
Company with effect from 9:30 a.m. on 30 June 2009 pend<strong>in</strong>g the issue <strong>of</strong> this announcement.<br />
An application has been made by the Company to the Stock Exchange for the resumption <strong>of</strong><br />
trad<strong>in</strong>g <strong>in</strong> the Shares with effect from 9:30 a.m. on 2 July 2009.<br />
INTRODUCTION<br />
On 29 June 2009, GP Auto entered <strong>in</strong>to the Agreement with the Vendor pursuant to which the<br />
Vendor had agreed to sell and GP Auto had agreed to purchase the Sale Interest, represent<strong>in</strong>g<br />
<strong>50%</strong> <strong>of</strong> the entire <strong>equity</strong> <strong><strong>in</strong>terest</strong> <strong>in</strong> <strong>Shanghai</strong> JAH, for a consideration <strong>of</strong> RMB80.1 million<br />
(approximately HK$90.9 million).<br />
- 1 -
THE AGREEMENT<br />
Date<br />
29 June 2009<br />
Parties<br />
Purchaser : GP Auto<br />
Vendor : Furukawa GP Auto Parts (HK) Limited<br />
As at the date <strong>of</strong> this announcement, the Vendor is an associate <strong>of</strong> the Company as it is owned as<br />
to 20% by GP Industries. The rema<strong>in</strong><strong>in</strong>g 80% <strong>equity</strong> <strong><strong>in</strong>terest</strong> <strong>in</strong> the Vendor is owned by The<br />
Furukawa Electric Co. Ltd. and Furukawa Automotive Systems Inc. as to 79.05% and 0.95%<br />
respectively.<br />
The Vendor is an <strong>in</strong>vestment hold<strong>in</strong>g company. It holds <strong>in</strong>vestments <strong>in</strong> several entities<br />
<strong>in</strong>corporated <strong>in</strong> the PRC which engage <strong>in</strong> the manufactur<strong>in</strong>g and sale <strong>of</strong> automotive wire harness.<br />
Save as aforesaid, to the best <strong>of</strong> the Directors’ knowledge, <strong>in</strong>formation and belief, hav<strong>in</strong>g made<br />
all reasonable enquiries, each <strong>of</strong> the Vendor and its ultimate beneficial owners is an <strong>in</strong>dependent<br />
third party not connected with the Company and its connected persons.<br />
Assets to be acquired<br />
The Sale Interest, represent<strong>in</strong>g <strong>50%</strong> <strong>of</strong> the entire <strong>equity</strong> <strong><strong>in</strong>terest</strong> <strong>in</strong> <strong>Shanghai</strong> JAH currently held<br />
by the Vendor. After Completion, <strong>Shanghai</strong> JAH will become an associate <strong>of</strong> the Company and<br />
<strong>equity</strong> account<strong>in</strong>g method will be used to account for <strong>Shanghai</strong> JAH’s results <strong>in</strong> the Group’s<br />
consolidated f<strong>in</strong>ancial statements.<br />
Consideration<br />
The total consideration for the Sale Interest is RMB80.1 million (approximately HK$90.9<br />
million), which was determ<strong>in</strong>ed after arm’s length negotiations between the parties to the<br />
Agreement with reference to the net asset value <strong>of</strong> <strong>Shanghai</strong> JAH as at 31 December 2008.<br />
The consideration for the Sale Interest will be funded by bank borrow<strong>in</strong>gs and <strong>in</strong>ternal resources<br />
<strong>of</strong> the Group.<br />
Method <strong>of</strong> payment<br />
GP Auto shall pay <strong>50%</strong> <strong>of</strong> the consideration for the Sale Interest to the Vendor with<strong>in</strong> four weeks<br />
from the date <strong>of</strong> the Agreement.<br />
The rema<strong>in</strong><strong>in</strong>g <strong>50%</strong> <strong>of</strong> the consideration for the Sale Interest shall be paid by GP Auto to the<br />
Vendor on the Settlement Day.<br />
The consideration for the Sale Interest shall be paid by Renm<strong>in</strong>bi or any other currency <strong>in</strong> an<br />
equivalent amount.<br />
- 2 -
Conditions<br />
Completion is conditional upon the follow<strong>in</strong>g conditions be<strong>in</strong>g fulfilled (or waived, as the case<br />
may be):<br />
(i) the pass<strong>in</strong>g <strong>of</strong> the necessary resolution(s) by the Shareholders <strong>in</strong> an extraord<strong>in</strong>ary general<br />
meet<strong>in</strong>g <strong>of</strong> the Company to be convened and held to approve the Agreement and the<br />
transactions contemplated thereunder;<br />
(ii) the pass<strong>in</strong>g <strong>of</strong> the necessary resolution(s) by the shareholders <strong>of</strong> GP Auto and/or the Vendor,<br />
and/or their respective hold<strong>in</strong>g/ultimate hold<strong>in</strong>g companies at general meet<strong>in</strong>gs <strong>of</strong> their<br />
respective shareholders or written resolution(s) <strong>in</strong> lieu <strong>of</strong> a meet<strong>in</strong>g, approv<strong>in</strong>g the<br />
Agreement;<br />
(iii) the obta<strong>in</strong><strong>in</strong>g <strong>of</strong> the approval <strong>of</strong> the board <strong>of</strong> directors <strong>of</strong> <strong>Shanghai</strong> JAH for the <strong>Acquisition</strong><br />
and the necessary revision <strong>of</strong> the articles <strong>of</strong> association;<br />
(iv) the issu<strong>in</strong>g by each <strong>of</strong> the Other Shareholders <strong>of</strong> a statement to waive any option or<br />
pre-emptive right to the Sale Interest without any premise;<br />
(v) the JV Contract and JV AOA hav<strong>in</strong>g been duly concluded between the GP Auto and the<br />
Other Shareholders; and<br />
(vi) the obta<strong>in</strong><strong>in</strong>g <strong>of</strong> the approvals <strong>of</strong> the PRC Approval Authorities for the <strong>Acquisition</strong>, the<br />
Agreement, the JV Contract and the JV AOA and the obta<strong>in</strong><strong>in</strong>g by <strong>Shanghai</strong> JAH <strong>of</strong> the<br />
certificate <strong>of</strong> approval from the PRC Approval Authorities<br />
Completion<br />
Completion shall take place on the date on which the new bus<strong>in</strong>ess licence is obta<strong>in</strong>ed by<br />
<strong>Shanghai</strong> JAH.<br />
Term<strong>in</strong>ation<br />
If either party term<strong>in</strong>ates the Agreement accord<strong>in</strong>g to terms and conditions set out there<strong>in</strong> and<br />
such term<strong>in</strong>ation occurs after the first payment <strong>of</strong> <strong>50%</strong> <strong>of</strong> the consideration for the Sale Interest,<br />
the Vendor shall unconditionally refund it to GP Auto without <strong><strong>in</strong>terest</strong> with<strong>in</strong> two weeks from<br />
the date <strong>of</strong> term<strong>in</strong>ation <strong>of</strong> the Agreement.<br />
INFORMATION ON SHANGHAI JAH<br />
<strong>Shanghai</strong> JAH is a s<strong>in</strong>o-foreign <strong>equity</strong> jo<strong>in</strong>t venture <strong>in</strong>corporated <strong>in</strong> the PRC. It is pr<strong>in</strong>cipally<br />
engaged <strong>in</strong> the manufactur<strong>in</strong>g and sale <strong>of</strong> automotive wire harness.<br />
- 3 -
Set out below is the audited f<strong>in</strong>ancials <strong>of</strong> <strong>Shanghai</strong> JAH for the two years ended 31 December<br />
2008.<br />
Year ended 31 December<br />
2007 2007 2008 2008<br />
RMB’000 HK$’000 RMB’000 HK$’000<br />
Turnover 759,516 862,051 811,728 921,311<br />
Pr<strong>of</strong>it before tax 43,302 49,148 78,350 88,927<br />
Pr<strong>of</strong>it after tax 38,201 43,358 68,658 77,927<br />
As at 31 December<br />
2007 2007 2008 2008<br />
RMB’000 HK$’000 RMB’000 HK$’000<br />
Total assets 380,420 431,777 368,836 418,629<br />
Net assets 194,896 221,207 226,394 256,957<br />
REASONS FOR AND BENEFITS OF THE ACQUISITION<br />
<strong>Shanghai</strong> JAH is a well-established company engag<strong>in</strong>g <strong>in</strong> the bus<strong>in</strong>ess <strong>of</strong> automotive wire<br />
harness s<strong>in</strong>ce 1997. Over the years, <strong>Shanghai</strong> JAH has achieved impressive results and has<br />
become one <strong>of</strong> the lead<strong>in</strong>g automotive wire harness manufacturers <strong>in</strong> the PRC.<br />
The Directors believe that the bus<strong>in</strong>ess <strong>of</strong> automotive wire harness is very promis<strong>in</strong>g <strong>in</strong> the PRC,<br />
and the <strong>Acquisition</strong> will give the Group a good opportunity to participate <strong>in</strong> and develop<br />
automotive wire harness bus<strong>in</strong>ess <strong>in</strong> the PRC.<br />
The Directors are <strong>of</strong> the op<strong>in</strong>ion that the terms <strong>of</strong> the <strong>Acquisition</strong> are fair, reasonable and on<br />
normal commercial terms, and the <strong>Acquisition</strong> is <strong>in</strong> the <strong><strong>in</strong>terest</strong>s <strong>of</strong> the Company and the<br />
Shareholders as a whole.<br />
GENERAL<br />
The Company acts as an <strong>in</strong>vestment hold<strong>in</strong>g company. The activities <strong>of</strong> its pr<strong>in</strong>cipal subsidiaries<br />
and associates are <strong>in</strong>vestment hold<strong>in</strong>g and development, manufactur<strong>in</strong>g, market<strong>in</strong>g and trad<strong>in</strong>g <strong>of</strong><br />
batteries, electronics and acoustics products, wire harness, cables, light fitt<strong>in</strong>gs products and<br />
LED display screens.<br />
The <strong>Acquisition</strong> constitutes a major transaction for the Company under Chapter 14 <strong>of</strong> the List<strong>in</strong>g<br />
Rules and is subject to the Shareholders’ approval. As no Shareholder has an <strong><strong>in</strong>terest</strong> <strong>in</strong> the<br />
<strong>Acquisition</strong> which is materially different from the other Shareholders, no Shareholder is required<br />
to absta<strong>in</strong> from vot<strong>in</strong>g on the resolution to be proposed at the extraord<strong>in</strong>ary general meet<strong>in</strong>g <strong>of</strong><br />
the Company to approve the <strong>Acquisition</strong> and the transactions contemplated thereunder.<br />
A circular conta<strong>in</strong><strong>in</strong>g, among other th<strong>in</strong>gs, further details <strong>of</strong> the <strong>Acquisition</strong> together with the<br />
notice <strong>of</strong> the extraord<strong>in</strong>ary general meet<strong>in</strong>g <strong>of</strong> the Company will be despatched to the<br />
Shareholders as soon as practicable.<br />
- 4 -
SUSPENSION AND RESUMPTION OF TRADING<br />
Deal<strong>in</strong>gs <strong>in</strong> the Shares on the Stock Exchange have been suspended at the request <strong>of</strong> the<br />
Company with effect from 9:30 a.m. on 30 June 2009 pend<strong>in</strong>g the issue <strong>of</strong> this announcement.<br />
An application has been made by the Company to the Stock Exchange for the resumption <strong>of</strong><br />
trad<strong>in</strong>g <strong>in</strong> the Shares with effect from 9:30 a.m. on 2 July 2009.<br />
DEFINITION<br />
“<strong>Acquisition</strong>”<br />
the acquisition <strong>of</strong> the Sale Interest by GP Auto pursuant to<br />
the Agreement<br />
"Agreement” the conditional <strong>equity</strong> transfer agreement dated 29 June 2009<br />
entered <strong>in</strong>to between GP Auto and the Vendor <strong>in</strong> relation to<br />
the <strong>Acquisition</strong><br />
“Board”<br />
“Company”<br />
“Completion”<br />
“Conditions”<br />
“connected person(s)”<br />
“Director(s)”<br />
“GP Auto”<br />
“GP Industries”<br />
“Group”<br />
“HK$”<br />
“Hong Kong”<br />
“JV AOA”<br />
the board <strong>of</strong> Directors<br />
Gold Peak Industries (Hold<strong>in</strong>gs) Limited (Stock code: 40), a<br />
company <strong>in</strong>corporated <strong>in</strong> Hong Kong with limited liability<br />
and whose Shares are listed on the Ma<strong>in</strong> Board <strong>of</strong> the Stock<br />
Exchange<br />
the completion <strong>of</strong> the <strong>Acquisition</strong> pursuant to the Agreement<br />
the various conditions precedent to Completion, as more<br />
particularly set out under the section headed “Conditions” <strong>of</strong><br />
this announcement<br />
has the mean<strong>in</strong>g given to it by the List<strong>in</strong>g Rules<br />
the Director(s) <strong>of</strong> the Company<br />
GP Auto Parts Limited, a company <strong>in</strong>corporated <strong>in</strong> Hong<br />
Kong with limited liability, a wholly owned subsidiary <strong>of</strong> GP<br />
Industries<br />
GP Industries Limited, a company <strong>in</strong>corporated <strong>in</strong> S<strong>in</strong>gapore<br />
with limited liability, the shares <strong>of</strong> which are listed on the<br />
S<strong>in</strong>gapore Stock Exchange and is owned as to 69.32% by the<br />
Company<br />
the Company and its subsidiaries<br />
Hong Kong dollars, the lawful currency <strong>of</strong> Hong Kong<br />
Hong Kong Special Adm<strong>in</strong>istrative Region <strong>of</strong> the PRC<br />
the new articles <strong>of</strong> association <strong>of</strong> <strong>Shanghai</strong> JAH which is to<br />
be executed by GP Auto and the Other Shareholders<br />
- 5 -
“JV Contract”<br />
“List<strong>in</strong>g Rules”<br />
“Other Shareholders”<br />
“PRC”<br />
“PRC Approval Authorities”<br />
“RMB” or “Renm<strong>in</strong>bi”<br />
“Sale Interest”<br />
“Settlement Day”<br />
“<strong>Shanghai</strong> DCAP”<br />
“<strong>Shanghai</strong> DCI”<br />
“<strong>Shanghai</strong> JAH”<br />
“Share(s)”<br />
“Shareholder(s)”<br />
“S<strong>in</strong>gapore Stock Exchange”<br />
“Stock Exchange”<br />
“Vendor”<br />
the new jo<strong>in</strong>t venture contract <strong>of</strong> <strong>Shanghai</strong> JAH which is to<br />
be executed by GP Auto and the Other Shareholders<br />
the Rules Govern<strong>in</strong>g the List<strong>in</strong>g <strong>of</strong> Securities on the Stock<br />
Exchange<br />
<strong>Shanghai</strong> DCI and <strong>Shanghai</strong> DCAP<br />
the People’s Republic <strong>of</strong> Ch<strong>in</strong>a<br />
the authorities at all levels <strong>of</strong> the PRC responsible for the<br />
exam<strong>in</strong>ation and approval <strong>of</strong> <strong>equity</strong> changes <strong>in</strong> foreign<br />
<strong>in</strong>vestment enterprises<br />
Renm<strong>in</strong>bi, the lawful currency <strong>of</strong> the PRC<br />
<strong>50%</strong> <strong>equity</strong> <strong><strong>in</strong>terest</strong> <strong>in</strong> <strong>Shanghai</strong> JAH, which is currently<br />
owned by the Vendor<br />
the 5 th work<strong>in</strong>g day after the date on which all the Conditions<br />
are satisfied<br />
車 (<strong>Shanghai</strong> Dongchang<br />
<strong>Automobile</strong> Parts Co., Ltd*), a company <strong>in</strong>corporated <strong>in</strong> the<br />
PRC with limited liability which currently owns 25% <strong>equity</strong><br />
<strong><strong>in</strong>terest</strong> <strong>in</strong> <strong>Shanghai</strong> JAH<br />
(<strong>Shanghai</strong> Dongchang<br />
Investment Development Co., Ltd*), a company<br />
<strong>in</strong>corporated <strong>in</strong> the PRC with limited liability which<br />
currently owns 25% the <strong>equity</strong> <strong><strong>in</strong>terest</strong> <strong>in</strong> <strong>Shanghai</strong> JAH<br />
金 車 (<strong>Shanghai</strong> J<strong>in</strong>t<strong>in</strong>g <strong>Automobile</strong><br />
Harness Limited*), a s<strong>in</strong>o-foreign <strong>equity</strong> jo<strong>in</strong>t venture<br />
<strong>in</strong>corporated <strong>in</strong> the PRC with limited liability<br />
ord<strong>in</strong>ary share(s) <strong>of</strong> HK$0.50 each <strong>in</strong> the share capital <strong>of</strong> the<br />
Company<br />
holder(s) <strong>of</strong> Shares<br />
The S<strong>in</strong>gapore Exchange Securities Trad<strong>in</strong>g Limited<br />
The Stock Exchange <strong>of</strong> Hong Kong Limited<br />
Furukawa GP Auto Parts (HK) Limited, a company<br />
<strong>in</strong>corporated <strong>in</strong> Hong Kong with limited liability<br />
- 6 -
“%” per cent.<br />
* For identification purposes only<br />
The exchange rate used for reference purpose only <strong>in</strong> this announcement is RMB1.00 to<br />
HK$1.135.<br />
Hong Kong, 30 June 2009<br />
www.goldpeak.com<br />
By Order <strong>of</strong> the Board<br />
WONG Man Kit<br />
Company Secretary<br />
As at the date <strong>of</strong> this announcement, the Board consists <strong>of</strong> Mr. Victor LO Chung W<strong>in</strong>g<br />
(Chairman & Chief Executive), Mr. Andrew NG Sung On (Vice Chairman), Mr. Kev<strong>in</strong> LO<br />
Chung P<strong>in</strong>g, Mr. Paul LO Chung Wai, Mr. LEUNG Pak Chuen, Mr. Richard KU Yuk H<strong>in</strong>g and<br />
Mr. Andrew CHUANG Siu Leung as Executive Directors, Mr. CHAU Kwok Wai, Mr. Raymond<br />
WONG Wai Kan and Mr. V<strong>in</strong>cent CHEUNG T<strong>in</strong>g Kau as Non-Executive Directors and Mr. LUI<br />
M<strong>in</strong>g Wah, Mr. Frank CHAN Chi Chung and Mr. CHAN Kei Biu as Independent Non-Executive<br />
Directors.<br />
- 7 -