HONG KONG, Sept 9, 2011 - (ACN Newswire) - The Board of Directors of CHIHO-TIANDE Group Limited ('Chiho-Tiande' or the 'Company', together with its subsidiaries, 'the Group', SEHK:976) is pleased to announce that an indirect wholly-owned subsidiary of the Company, Chiho-Tiande (HK) Limited as the purchaser, entered into the Formal Sale and Purchase Agreement with Brigantine International Holdings Limited as the Vendor, pursuant to which the Vendor has agreed to sell, and the Purchaser has agreed to purchase, the leasehold interest of the Property of an industrial site located at the Yuen Long Industrial Estate with a total area of 385,735 sq. ft. and three buildings erected thereon for the Consideration of HK$148 million. The Consideration comprises the Purchase Price of HK$108 million payable to the Vendor and the Administrative Fee of HK$40 million payable to HKSTP, the lessor of the Property.
The Group intends to develop the Property into an integrated processing facility capable of processing mixed metal scrap and electronics recycling. The electronics recycling will focus on IT equipment and home appliances such as refrigerators and/or air conditioning units. The Property will be developed in three stages over a period of 84 months, and the Project will involve refurbishment of the existing buildings and construction of new buildings, which are to be used by the Group as processing plants. The Project further includes the purchase and installation of all machinery, plant and equipment necessary for the commencement of operation by the Group. The total investment amount of the Project (including the Consideration) will be approximately HK$697.6 million.
The Directors consider that the Transaction (i.e., the Acquisition and the Project) will reinforce the Group's traditional business of mixed metal scrap recycling, reuse and processing. The Transaction will also enable the Group to expand into the business of electronics recycling. Electronic products are a source of various precious and non-precious metals and electronics recycling represents a strong potential synergy with the traditional mixed metal business. In the view of the rapid development of the mixed metal scrap recycling business in Hong Kong, The Directors believe that the Transaction will further increase the Group's market shares in the metal scrap processing business and will help establish the electronics recycling business within the region and will thus generate reasonable return to the Group.
About Chiho-Tiande Group Limited
Chiho-Tiande Group Limited is a global leading mixed metal scrap recycler, specializing in recycling, disassembling and processing of mixed metal scrap and reuse of resources. Its three major business areas are metal recycling, foundry production and wholesale. The Group is the largest mixed metal scrap recycler in China in terms of the total import volume and the actual import volume of mixed metal scrap approved by the Ministry of Environmental Protection, and also the largest importer of mixed metal scrap for importing, recycling, reusing and processing. USUM Investment Group Hong Kong Limited, indirectly owned by Mr. Tu Jianhua, is the single largest shareholder of Chiho-Tiande.
For more information, please visit http://www.chiho-tiande.com/
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Sept 9, 2011 19:40 HKT/SGT
Source: Chiho-Tiande Group Limited
Topic: Construction of Facility
Sectors: Daily Finance
From the Asia Corporate News Network
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