China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries, the "Group", HKSE stock code: 01333) hosted an Extraordinary General Meeting to seek shareholder approval in relation to its proposed A-share spin-off today. The Company received a significant majority of votes in support of all resolutions, which included the approval of the asset transfer agreement signed between the Group and CRED Holding Co. Limited (“CRED Holding”, SSE stock code: 600890) and the proposed spin-off of Liaoning Zhongwang, marking another major step on the road of the A-share spin-off.
In March 2016, the Group announced an asset transfer agreement with CRED Holding, under which the Group will inject its industrial aluminium extrusion business into CRED Holding to achieve a spin-off on the A-share market. Upon the approval by China Securities Regulatory Commission and Ministry of Commerce and the completion of the transaction, the Group will have a clear business structure, with the Hong Kong listed entity having a more distinctive business focus reflecting its competitive strengths for the benefit of the Group’s long-term development.
Mr. Lu Changqing, President and Executive Director of China Zhongwang, said, “The transaction is a major milestone in China Zhongwang’s business development. Upon completion of the spin-off, the Group will benefit from a clear division of business and management to propel the growth of its various business arms. It will also have a positive impact on the development of the industry as a whole. The Hong Kong listed entity, as the major shareholder, will continue to share the solid business growth of the industrial aluminium extrusion business and stand to reap the benefit of the revaluation opportunity to truly reflect our corporate value, thereby rewarding shareholders with improved returns.”
