EANS-News: Tianbao Holdings Limited
Possible acquisition of land
40% below market value.
18.10.2013 – 10:39
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Company Information Zhengzhou City, China (euro adhoc) - Tianbao Holdings Ltd (Ticker : 3TB1) has confirmed that it has been approached by Henan Development Sanjiang Real estate Company , founded in 1993 , a major property developer with revenues that exceeded 1.5 billion RMB in 2012, , to see if Tianbao would contemplate a purchase of a 33,000 m² plot of land that is attached to the existing property owned by Tianbao , . The land itself is designated for low income housing and therefore complements the business of Tianbao . It already has the license necessary to proceed with the build out , and work could commence immediately . Henan Development Sanjiang Real Estate Company , had originally acquired the property with a view of the building 14 apartment structures but was unable to proceed with the project as they are heavily engaged by other projects Local Government has been putting pressure on Henan Development Sanjiang Real Estate company Limited for completion of the project. Henan Development Sanjiang come up with a resolution to sell the land to Tianbao Holdings and commence the construction immediately.. The initial proposal that is on the table is that Tianbao Holdings acquire the property at 40% below the market value of the property from Henan Development Sanjiang Real estate Company Limited, the property will immediately vest in Tianbao , giving it a legal right over the property . The addition of the property to the balance sheet of the company less any amount owing will boost the total assets by approximately 34,000,000 Euro, and the sum will also be taken into account in the profit and loss account under IFRS accounting policy. Commenting, the CEO said it has been frustrating for both Tianbao and Henan Development Sanjiang Real estate Company , to have these protracted talks over fair market value for running the utilities across Tianbao property, and the solution proposed namely that Tianbao takeover the property at 40% below market to develop it a with the land rights being transferred immediately to Tianbao is extremely attractive. The CEO then went on to say that he would reach a decision within the next seven days as to whether he wished to proceed with this transaction but felt initially that the transaction itself would be extremely beneficial to Tianbao He estimated that upon the completion of the buildings Tianbao would be in a position to make an additional 45 million Euro profit. About Tianbao Holdings: Tianbao Holdings (the 'Company') is an economically-affordable housing manufacturer in the People's Republic of China. The Company works closely with the Chinese government in acquiring the land for new housing developments and constructing the homes per the specifications of the housing plans of both the national Chinese government as well as the provincial governments, in particular Henan Province, wherein all of the Company's projects to date have been located. Safe Harbor Statement; The statements contained herein are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Further inquiry note: Please address questions to : tianbaoholdings@gmail.com end of announcement euro adhoc -------------------------------------------------------------------------------- company: Tianbao Holdings Limited Yu Feng Road, Jinshui District, Zhengzhou City NO.333 CN-454000 Zhengzhou City, China phone: 852-25876138 mail: tianbaoholdings@gmail.com WWW: http://www.tianbaoholdings.com/ sector: Real Estate ISIN: BMG887252085 indexes: stockmarkets: free trade: Berlin, Frankfurt language: English