Cathay International Holdings Ld Renewal of Cross Guarantee (0767Y)
03 May 2019 - 11:24PM
UK Regulatory
TIDMCTI
RNS Number : 0767Y
Cathay International Holdings Ld
03 May 2019
Cathay International Holdings Limited ("Cathay" or the
"Company")
Renewal of Cross Guarantee Agreement
between Jilin Haizi and Lansen's subsidiaries
Hong Kong, 3 May 2019 - Cathay International Holdings Limited
(LSE: CTI.L), an operator and investor in the growing healthcare
sector in the People's Republic of China, today announces the
proposed renewal of a cross guarantee agreement first entered into
in June 2016 between Jilin Haizi Bio-Engineering Technology Company
Ltd ("Jilin Haizi"), (a wholly owned subsidiary of the Company),
Ningbo Liwah Pharmaceutical Company Ltd ("Ningbo Liwah") (a wholly
owned subsidiary of Lansen Pharmaceutical Holdings Ltd ("Lansen"
(HKEX: 503), in which the Company has a 50.68% holding)) and Lansen
BVI (also a wholly owned subsidiary of Lansen).
The 2016 Cross Guarantee Agreement will expire on 30 June 2019
and, therefore, Ningbo Liwah, Jilin Haizi and Lansen BVI have
entered into the 2019 Cross Guarantee Agreement, subject to the
approval of Lansen's independent shareholders pursuant to the
requirements of the Hong Kong Listing Rules.
The terms of the 2019 Cross Guarantee Agreement are unchanged
from the 2016 Cross Guarantee Agreement save that it will be valid
from 1 July 2019 to 30 June 2022 (the "Term"). Under the terms of
the 2019 Cross Guarantee Agreement and during the Term, Jilin Haizi
has agreed to provide guarantees in respect of obligations of
Ningbo Liwah in respect of bank facilities obtained or to be
obtained by Ningbo Liwah (the "Jilin Haizi Guarantees"). On a
reciprocal basis, Lansen BVI has agreed to procure that its
subsidiary, as appropriate, provide guarantees in respect of
obligations of Jilin Haizi under the bank facilities to be obtained
by Jilin Haizi (the "Lansen BVI Guarantees") (the Jilin Haizi
Guarantees and the Lansen BVI Guarantees, collectively, the
"Guarantees").
During the Term, the total amount of the Jilin Haizi Guarantees
contemplated under the Cross Guarantee Agreement shall not exceed
RMB130,000,000 (USD19.3 million); and, on a reciprocal basis, the
total amount of the Lansen BVI Guarantees contemplated under the
Cross Guarantee Agreement shall not exceed RMB130,000,000 (USD19.3
million). The Guarantees are unsecured.
The bank loans to be borrowed by the parties and covered by the
Guarantees should be used solely for the purpose of meeting the
funding requirement of each of the parties in their ordinary course
of business.
The directors of the Company are satisfied that the 2019 Cross
Guarantee Agreement is on normal commercial terms.
The full text of the Lansen Announcement can be found at
http://www3.hkexnews.hk/listedco/listconews/SEHK/2019/0503/LTN201905031549.pdf
and will also be made available at the Announcements & Notices
section of Lansen's homepage at
http://holding.lansen.com.cn/en/newslist.aspx?NodeCode=10002000700050005.
- ENDS -
For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director) Tel: +852 2828 9289
Patrick Sung (Director and Controller)
Consilium Strategic Communications
Mary-Jane Elliott/ Matthew Neal / Lindsey Neville Tel: +44 (0)
203 709 5700
About Cathay
Cathay International Holdings Limited (LSE: CTI.L) is a main
market listed investment holding company and an operator and
investor in the healthcare sector in the People's Republic of China
(the "PRC"). The Group aims to leverage on investment opportunities
in the growing domestic demand for high quality healthcare products
in the PRC and build portfolio companies into market sector leaders
with competitive edge. Cathay has already demonstrated a track
record of identifying investment opportunities in this area
including: Lansen, a PRC specialty pharmaceutical company focused
on rheumatology and dermatology; Haizi, a PRC inositol
manufacturer; Natural Dailyhealth, a company engaged in production
and sales of plant extracts for use as key active ingredients in
healthcare products; and Botai, a company engaged in collagen
products.
The Group employs approximately 1,600 people across the PRC,
including over 20 specialist corporate and business development
staff based at the holding company's offices in Hong Kong and
Shenzhen. Cathay also has a hotel investment in Shenzhen. For more
information please visit the Company's website:
http://www.cathay-intl.com.hk.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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