Digital China Holdings (00861) said it agreed to sell to HC International (02280) 60% interest in Chongqing Digital China Huicong Micro-credit Co., Ltd. for Rmb1,084 million.
Digital China also agreed to subscribe about 175 million HC International shares for a total of HK$1.227 billion.
Upon completion, Digital China will hold 29% of the enlarged issued share capital of HC International. HC International will hold the entire equity interest in Chongqing Micro-credit through its wholly-owned subsidiaries.
The Digital China Group is expected to record an unaudited gain after taxation of about HK$220 million. Proceeds of the disposal are intended to be used for subscription of the HC International shares.
Chongqing Micro-Credit is a company established in the PRC and is a joint venture owned as to 60% by the Company and 40% by HC International through their respective wholly-owned subsidiaries. Chongqing Micro-credit is principally engaged in the development and operation of micro-credit internet financing business in the PRC and the development of micro-finance products such as trade finance, personal credit and guaranteed loan.