PAN ASIA ENVIRO plans to sell a 51% stake in its U.S. subsidiary
===== PAN ASIA ENVIRO announced plans to sell a 51% stake in its U.S. subsidiary on December 30, 2024, for a transaction amount of USD 450,000 (approximately HKD 3.51 million). This move aims to reallocate resources to pursue other business opportunities, particularly in the development of the AI industry. The board believes that the transaction has been fairly negotiated and is in the overall interest of the company and its shareholders. The company has established a wholly-owned subsidiary in Chengdu to develop AI business and has reached a strategic cooperation agreement with Chengdu QingShu Technology Co., Ltd. =====
According to the announcement from PAN ASIA ENVIRO (00556), on December 30, 2024, the company (as the seller) entered into a sales agreement with Mr. Perez (as the buyer), under which the company agreed to sell and Mr. Perez agreed to acquire a 51% stake in its U.S. subsidiary for a price of USD 450,000 (equivalent to approximately HKD 3.51 million).
Due to the business performance of the U.S. subsidiary not meeting the group's expectations and long-term goals, in order to allow the group to reallocate resources for other business opportunities, including but not limited to acquiring other companies to promote its development in the AI industry, the board of directors believes that the sale is an appropriate action. The directors (including independent non-executive directors) believe that although the sale is not part of the company's daily business operations, it was conducted through fair negotiation and on normal commercial terms, thus deeming the sale and the terms of the sales agreement to be fair and reasonable, in the overall interest of the company and its shareholders.
Looking ahead, the group will continue to expand its development in the AI industry in China. The group has established a wholly-owned subsidiary in Chengdu to develop AI business and has achieved significant results, successfully entering into a strategic cooperation agreement with Chengdu QingShu Technology Co., Ltd. This company is a Chinese high-tech enterprise focused on research and application in the fields of big data and intelligent computing, possessing a cloud computing platform that can provide comprehensive infrastructure and application programming interface services
