CNNC International (02302) plans to sell 100% of CNNC International (Hong Kong) shares for HK$167 million

According to the Zhitong Finance App, CNNC International (02302) announced that on October 16, 2024, the company plans to sell the entire issued share capital of CNNC International (Hong Kong) Limited to CNNC Treasury at an initial cost of about HK$167 million.

As of the date of this announcement, the target company held 7.55% of CNNC Leasing's shares. CNNC Leasing is mainly engaged in providing financial leases and financial guarantees for clean energy-related projects (including but not limited to nuclear energy, wind energy and water energy).

The directors believe that the sale of the target company (which holds a minority interest in CNNC Leasing, which is unrelated to the company's main business) is a prudent and timely opportunity for the Group to realize its investment at a fair and reasonable price. Although CNNC Leasing has been generating dividend income over the past few years, it is considered a non-core asset, which is inconsistent with the Group's focus on uranium resources. The directors believe that the sale will allow the Group to more effectively reallocate resources to advance its core business and implement its long-term strategy for uranium trading and other related business activities.

The sale is also expected to improve the Group's liquidity and enable a more efficient allocation of internal resources. Based on initial costs and deducting estimated professional expenses directly attributable to the sale and other related expenses and taxes, the net proceeds from the sale are estimated to be approximately HK$164.4 million, which will be used to strengthen the Group's working capital and enhance its financial capacity to further develop the Group's uranium-related business.

The directors believe that by withdrawing this non-core asset, the Group will be able to further reduce the financial risks and capital burdens faced in non-strategic areas, and use resources to expand its uranium business, thereby supporting the Group's strategic goal of consolidating its position in the global uranium trading market, which will benefit the Group's long-term development and long-term overall profitability.