KING PACIFIC<0072> - Announcement
The Stock Exchange of Hong Kong Limited takes no responsibility
for the contents of this announcement, makes no representation
as to its accuracy or completeness and expressly disclaims any
liability whatsoever for any loss howsoever arising from or
in reliance upon the whole or any part of the contents of this
announcement.
KING PACIFIC INTERNATIONAL HOLDINGS LIMITED
(Incorporated in Bermuda with limited liability)
Announcement
clarification on newspaper article
and
exceptional price decrease in the share of the company
The Board wishes to clarify certain matters reported in various
newspaper articles on 27th November, 1999 in relation to the
Group's plan on disposal of certain assets of the Group and
the Group's plan on investment in local and overseas high
technology development projects.
The Board also wishes to clarify the recent exceptional price
decrease in the share of the Company.
This statement is made at the request of The Stock Exchange
of Hong Kong Limited
1. Clarification on newspaper articles
The Board notes that certain articles appearing in various
newspapers on 27th November, 1999 about the Group's plan on
disposal of certain assets of the Group and the Group's plan
on investment in local and overseas high technology development
projects.
The Board wishes to state that the Group has commenced
discussion with an independent third party not connected with
any director, chief executive or substantial shareholder of
the Company or its subsidiaries or their respective associates
(as defined in the Listing Rules) in relation to a possible
disposal of the Group's entire equity interest in Minzu. Minzu
is a co-operative joint venture established in the PRC of which
Yiu Wing Ningsi Real Estate Development Company Limited, an
80% owned subsidiary of the Company, is the foreign investor
thereto. Minzu is in the business of hotel operation.
The Board also wishes to state that the Group is currently in
negotiation with another independent third party not connected
with any director, chief executive or substantial shareholder
of the Company or its subsidiaries or their respective
associates (as defined in the Listing Rules) relating to a
possible sale of the Group's entire equity interest in HCZP.
The Group owns 40% equity interest in HCZP as at the date of
this announcement. HCZP is in the business of power supply
operation.
The Board wishes to state the Group entered into the above
negotiations because the Group tends to focus on the remaining
businesses including the construction business, restaurant
operation, water supply factory operation and toll road
operation in which the Group's management has expertise on and
if opportunities arise, to select business opportunities
including investment in high technology development projects.
Therefore, the Group intends to dispose of these assets to
generate cash flow for future operation.
The Board wishes to state that the above discussions are still
at preliminary stages and no agreement whatsoever has been
reached and such disposals may or may not constitute notifiable
transactions under the Listing Rules.
The Board also wishes to state that as disclosed in the Company's
1999 annual report, the Group intended to diversify its
business and develop new business opportunity in high
technology sector. Nevertheless, the Group has not commenced
any negotiation or discussion with any local or overseas party
in relation to investment in high technology development
projects.
2. Exceptional price decrease in the share of the Company
The Board also notes the recent exceptional price decrease in
the share of the Company and confirms that, save for the above,
there are no negotiations or agreements relating to intended
acquisitions or realisations which are discloseable under
paragraph 3 of the Listing Agreement, neither is the Board aware
of any matter discloseable under the general obligation imposed
by paragraph 2 of the Listing Agreement, which is or may be
of a price-sensitive nature.
Shareholders of the Company and investors are advised to
exercise caution in dealing in the shares of the Company.
Further announcement will be made by the Company in due course
if any agreement is reached in respect of the said proposed
transactions.
3. Definitions
"Board" the board of directors of the Company
"Company" King Pacific International Holdings Limited
"Group" the Company together with its subsidiaries
"HCZP" Hubei Chang Zhou Power Development Co., Ltd.
"Listing Rules" the Rules Governing the Listing of Securities
on The Stock Exchange of Hong Kong Limited
"Minzu" Guangzhou Minzu Guest House Company Limited
By Order of the Board
Cheung Wing Keung, Samuel
Director
Hong Kong, 29th November, 1999
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