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| Monday, 11 June 2018, 16:23 HKT/SGT | |
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Divests Mature Business and Increases Cash Reserve
Invests into the Future with High Growth Opportunity
Optimizes Business Structure, Focuses on Advanced Technology |
HONG KONG, June 11, 2018 - (ACN Newswire) - China All Access (Holdings) Limited ("China All Access" or the "Company", together with its subsidiaries the "Group"; stock code: 633.HK), announced that it has disposed of its entire equity interests in Hebei Noter Communication Technology Co., Limited ("Hebei Noter") and Hebei Haoguang Communication Technology Limited ("Hebei Haoguang") (the "Target Group") at a total consideration of RMB 1.75 billion to China RS Group Limited.
The Target Group is mainly in the business of development and provision of communication equipment, application service system operation management, and application upgrade and system maintenance. Pursuant to the disposal agreement, the purchaser shall pay China All Access the consideration in cash within 30 months. China All Access intends to use the net proceeds from the disposal as general working capital for developing new energy business, research and development of new information and communication technology (ICT), as well as high-end manufacturing, and as reserve for potential acquisitions in the future.
China All Access believes the divestment will bring tremendous benefit to the Company. Firstly, the divested business, which mainly provides 2G and 3G information communication solutions, is relatively mature and has limited room for growth potential with increasing competition in the niche market. The management team considered the divestiture as a good opportunity at the right timing to create value for the Company. Secondly, the monetization of the mature business will increase the Group's cash reserve and better prepare the Company to invest in the ICT high-end manufacturing and new energy sectors in the future, which will create higher rate of return. Thirdly, the divestiture aligns with the Group's strategic transformation from a solution provider to an integrated technology and high-end manufacturing Company, and allows the management team to streamline the business structure and improve the effectiveness of administration and management. At the end of last year, the Group decided to set up its PRC headquarters in Shenzhen, which will allow it to tap the robust innovation and technological development of the city and work closer with its operations in Hong Kong. Disposing members of the Company in Hebei Province is a major step to reallocate engineering, sales and marketing resources to Shenzhen, speed up directing resources into the Big Bay Area and establish core business in Shenzhen. The Company has very solid financial position, with dividend yields up to about 6.5% and net asset value per share approximately HK$2.00, about 2.5 times the closing price of HK$0.78 on June 1, 2018.
In the future, the Group will continue to focus on and optimize its two major business segments - ICT high-end manufacturing and new energy, which are expected to create higher rate of return.
Topic: Press release summary
Sectors: Telecoms, 5G, Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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