Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

(Stock code: 00560) DISCLOSABLE TRANSACTION

The Board is pleased to announce that on 3 August 2016, Chu Kong Warehouse Properties Co. Ltd., a wholly-owned subsidiary of the Company, and the Government entered into the Agreements in relation of the Land Exchange. Pursuant to the Agreements, CKWH agrees to surrender Section A of Tuen Mun Town Lot No. 320 to the Government and the Government agrees to regrant a lot to be known and registered in the Land Registry as Tuen Mun Town Lot No. 491 to CKWH for a premium of HK$198,970,000 subject to the terms and conditions of Agreements.

As one or more of the applicable Percentage Ratios in respect of The Land Exchange is 5% or more but less than 25%, the Land Exchange constitutes a disclosable transaction for the Company and is subject to the reporting and announcement requirements but is exempt from the shareholders' approval requirement under Chapter 14 of the Listing Rules.

  1. INTRODUCTION

    The Board is pleased to announce that on 3 August 2016 , CKWH and the Government entered into the Agreements in relation to the Land Exchange for a premium of HK$198,970,000.

  2. DETAILS OF THE LAND EXCHANGE Date of Agreements

    3 August 2016

    Parties
    1. The Government (as the grantor)

    2. CKWH (as surrenderor/grantee")

    3. Transaction

      The Government agrees to regrant the New Lot to CKWH and CKWH agrees to surrender and yield to the Government the Old Lot contemporaneously with the execution of the Agreements.

      Asset to be surrendered

      The Old Lot, representing the piece or parcel of ground known as Section A of Tuen Mun Town Lot No. 320, together with all messuages erections structures and buildings (if any) on the said piece or parcel of ground.

      Area to be surrendered

      5,104m2

      Asset to be regranted

      The New Lot, representing the piece or parcel of ground to be known and registered as Tuen Mun Town Lot No. 491.

      Area to be regranted

      23,800 m2

      Term of the Asset to be regranted

      50 years from the date of the Agreement

      Permitted use of the New Lot

      For berthing of vessels, cargo handling, ancillary workshop and offices.

      Premium for the Land Exchange

      HK$198,970,000

      Payment Terms

      On 11 May 2016, CKWH has paid HK$19,897,000 as the deposit pending the ultimate agreement of the grantor and preparation of the necessary documents to effect the terms of the Land Exchange (which has been applied as in part payment of the premium). The balance of the premium will be payable on or before the date of execution of the Agreements.

      The premium payable on completion of the Land Exchange by CKWH will be financed by the Group's internal resources.

    4. REASONS FOR AND BENEFITS OF THE TRANSACTION

      As the function of the wharf at the Old Lot was affected by the reclamation project of the Government, the Group agreed to surrender of the Old Lot for exchange of the New Lot so as to maintain the existing business and revenue of the Group. The Directors consider that the Land Exchange is in the interests of the Company and its shareholders as a whole and the terms thereof are on normal commercial terms, which are fair and reasonable.

    5. INFORMATION ON THE GROUP

      The Group is mainly engaged in provision of management and other related services to high-speed waterway passenger transportation in Guangdong, Hong Kong and Macau; the operation and management of river trade cargo terminals in the Mainland China and Hong Kong; and cargo transportation, warehousing and storage businesses.

    6. LISTING RULES IMPLICATIONS
    7. As one or more of the applicable Percentage Ratios in respect of The Land Exchange is 5% or more but less than 25%, the Land Exchange constitutes a disclosable transaction for the Company and is subject to the reporting and announcement requirements but is exempt from the shareholders' approval requirement under Chapter 14 of the Listing Rules.

      DEFINITIONS

      In this announcement, unless the context requires otherwise, the following terms shall have the meanings set out below:

      "Agreement"

      the agreement together with the Conditions of Exchange entered into between CKWH and the Government on 3 August 2016 in respect of the granting of the New Lot

      "Agreements"

      the Agreement, the Conditions of Exchange and the Deed of Surrender

      "Board"

      the board of Directors

      "BVI"

      the British Virgin Islands

      "CKWH /

      Surrenderor/Grantee"

      Chu Kong Warehouse Properties Co. Ltd., a company incorporated in BVI with limited liability and is directly wholly-owned by the Company

      "Companies Ordinance"

      Companies Ordinance, Chapter 622 of the Laws of Hong Kong

      "Company"

      Chu Kong Shipping Enterprises (Group) Company Limited (stock code: 00560), a company incorporated in Hong Kong with limited liability under the Companies Ordinance and the shares of which are listed on the main board of the Stock Exchange

      "Conditions of Exchange"

      the conditions of exchange attached with the Agreement entered into between CKWH and the Government on 3 August 2016 in respect of the granting of the New Lot

      "Deed of Surrender"

      the deed of surrender entered into between CKWH and the Hong Kong Government on 3 August 2016 in respect of the surrender of the Old Lot

      "Director(s)"

      the director(s) of the Company

      "Government / Grantor"

      the Government of Hong Kong Special Administrative Region

      "Group"

      the Company and its subsidiaries

    CKS - Chu Kong Shipping Development Company Limited published this content on 03 August 2016 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 03 August 2016 09:15:03 UTC.

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