A joint venture of Xinchuang Group (00659) intends to sell its Hyva Group interests to JOST

Zhitong Financial App News, New Creation Group (00659) announced that on October 14, 2024, Hyva I B.V. and one of its subsidiaries (collectively, the “Hyva Seller”) entered into an agreement with Jost-Werke International Beteiligungsverwaltung GmbH (“JOST”) regarding the sale by the Hyva seller of all of its rights in Hyva III B.V. and its subsidiaries (collectively, the “Hyva Group”) JOST, and prompted Hyva I B.V. shareholders to transfer all of Hyva Group's debts to JOST. Hyva I B.V. is a joint venture between one of the company's subsidiaries and other investors, and the company indirectly holds 50%. Hyva Group's corporate value under the proposed sale was US$425 million.

According to reports, the Group and Unitas Capital Pte Ltd invested in Hyva Group in 2011. Hyva Group is mainly engaged in the production and supply of components for hydraulic handling systems. JOST is a subsidiary of JOST Werke SE (a company listed on the Frankfurt Stock Exchange, mainly engaged in the production and supply of “safety critical systems” for commercial vehicles).

After completing the proposed sale (which is expected to occur in early 2025), the Group will no longer hold any interest in Hyva Group.

The Board believes that the proposed sale is in line with the company's strategy to optimize its business portfolio and create value for its shareholders. Taking into account the amount expected to be distributed by Hyva I B.V. under the terms of the joint venture after completing the proposed share transfer, the Group estimates that the net proceeds from the proposed sale will be approximately US$156 million (approximately HK$1.22 billion).