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ITC Properties Group has announced that its wholly owned subsidiary will acquire sale shares and a related sale loan from Profit Tycoon for a total consideration of HKD 336.68 million. The transaction involves the purchase of 20 issued shares in PYI Investment, representing a 20% stake in the company. The acquisition is part of ITC Properties' strategy to strengthen its presence in mainland China's property and infrastructure sector through PYI Investment's land holdings and development projects. The deal will also establish a shareholder arrangement between the two parties.
ITC Properties Group has announced that its wholly owned subsidiary, ITC Strategic Holding Limited, will acquire sale shares and a related sale loan from Profit Tycoon Limited for a total consideration of HKD 336.68 million. The acquisition involves 20 issued shares in PYI Investment Limited, representing a 20% stake in the company.
The company stated that the transaction includes both the equity stake and the shareholder loan associated with the investment. Once completed, ITC Strategic Holding will become a shareholder in PYI Investment alongside Profit Tycoon, with both parties expected to enter into a shareholders' agreement to govern the management and operation of the company.
PYI Investment has interests in property, infrastructure and land development projects in mainland China through its Jiangsu Yangtong Group operations. The group owns significant land parcels in Rudong County, Jiangsu Province, which are earmarked for residential and commercial property development, cultural tourism, leisure projects, agricultural services and infrastructure-related businesses.
ITC Properties indicated that following the completion of the acquisition, PYI Investment will be treated as an associate rather than a consolidated subsidiary. The transaction forms part of the company's ongoing efforts to realign its investment portfolio by increasing its exposure to long-term real estate and infrastructure assets in mainland China. According to the company's announcement, the consideration for the acquisition will be funded through a mix of a consideration note, cash and the disposal of ITC Finance.
The latest investment builds on ITC Properties' strategy of focusing on property-related investments across Hong Kong and mainland China. The company has, over the years, diversified its portfolio through investments in real estate, infrastructure and strategic holdings, with mainland China continuing to remain a key growth market for its property business.
Source Reuters
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