National Agri (01236) inks LoI to buy Shanghai properties

    National Agricultural (01236) said it entered into a non-legally binding letter of intent with controlling shareholder Parko (Hong Kong) Limited, Hui Ding Capital Management Co. Ltd. and Bright Glory Asia Investment Limited in relation to the possible acquisition of not less than 51% equity interests in a company established in the PRC which will be the beneficial owner of a piece of land and certain properties in Shanghai for development of the Group's international trading platform.
  The possible acquisition is proposed to be settled partly by cash and partly by the issue of consideration shares.
  The properties are strategically located at the Eastern starting point of the "One Belt One Road" strategy as initiated by the PRC Government. The exhibition centre, which is known as the Shanghai Trans-National Procurement Centre forms an integral part of the properties and by basing National Agricultural's agricultural trading platform at the Shanghai Trans-National Procurement Centre, National Agricultural will be able to leverage on the advantages as well as the resources of the Shanghai Trans-National Procurement Centre and thereby providing an ideal forum for implementing integral functions of its agricultural trading platform, such as exhibition centres, trading centres and big-data collection centres, with a view to processing, segmenting and utilising the transaction data of large number of agricultural industry participants.