Zhuguang Holdings Group Co. Ltd. entered two separate deals totaling an estimated HK$2.02 billion to become the single largest shareholder of Silver Grant International Industries Ltd., with a 28.44% shareholding.
Zhuguang Holdings is buying an approximately 15.80% stake in Silver Grant International for about HK$1.12 billion from CGNPC International Ltd. under the first deal. In the second agreement, the listed property company is purchasing additional stake of about 12.64% in the target from Silver Grant Group Ltd. for nearly HK$897.0 million.
Silver Grant International is principally engaged in investment holding, property leasing and production. It also trades petrochemical products and provides subcontracting services. Zhuguang Holdings noted in a filing that securing a substantial stake in the target will allow it to diversify its revenue and subsequently enhance its development sustainability.
At the completion of the stake deal with Silver Grant Group, Zhuguang Holdings will be entitled to appoint two directors of Silver Grant International.