SHENGLI PIPE has decided to conduct a public tender through the Southern United Property Exchange Center
SHENGLI PIPE has decided to publicly bid through the Southern United Property Rights Exchange Center to sell its 98% equity stake in the target company. The bidding announcement has been released, with a minimum bid price of 29.5 million yuan. The potential final proceeds from the sale will depend on the bid price of the winning bidder, and it is expected that the group will recognize approximately 14 million yuan in earnings and a fair value reduction of 14.272 million yuan within six months ending June 30, 2025. After a successful bid, it is expected that a final equity sale agreement will be signed with the winning bidder
According to the announcement from Shengli Pipeline (01080), the company has disclosed potential sales through public bidding. As stated in the announcement, the group intends to sell 98% of the equity held by Shandong Shengli in the target company through a public bidding process at Shanghai United Assets and Equity Exchange (Shanghai United Assets Exchange). As a further development, considering the internal review requirements and the time needed for procedures at Shanghai United Assets Exchange, the group has decided to conduct the public bidding through Southern United Assets and Equity Exchange (Southern Assets).
The board hereby announces that the bidding notice regarding the potential sale has been published on the Southern Assets website as of the date of this announcement. Interested parties can apply to Southern Assets to register as potential buyers of the target company. After the registration period ends, potential buyers on the shortlist will be selected as qualified bidders. These qualified bidders will then be invited to participate in the online bidding process. After the online bidding process concludes, the winning bidder will be determined as the qualified bidder who submitted the highest bid.
As disclosed in the announcement, the minimum bid price for the potential sale is RMB 29.5 million. The final price of the potential sale will depend on the final bid price and, in any case, shall not be lower than the minimum bid price. Since the final gains/losses from the potential sale depend on the final bid price provided by the winning bidder, which can only be determined after the successful completion of the public bidding, the financial impact of the potential sale has not yet been determined. For illustrative purposes, assuming the potential sale is conducted at the minimum bid price of RMB 29.5 million, it is expected that the group will recognize a gain of approximately RMB 14,000 from the sale of a subsidiary for the six months ending June 30, 2025, and will record a fair value reduction of approximately RMB 14.272 million in the consolidated income statement under equity investments—designated at fair value through other comprehensive income, to be recognized in the consolidated statement of other comprehensive income.
Upon the successful completion of the public bidding, Shandong Shengli (the seller of the target company) is expected to enter into a final equity sale agreement with the winning bidder (if any)
