Euro Asia to acquire Yanxi Industrial Shanghai Company Ltd.

  • Sale of industrial group will be effected by a pure share deal
  • Private placement commenced in order to increase working capital

Hong Kong, SAR Peoples' Republic of China, 02 June, 2016

Euro Asia Premier Real Estate Company Limited (JT9; ISIN: VGG3223A1057) is pleased to announce the intention to acquire all outstanding shares of Yanxi Industrial Shanghai Company Ltd. for a consideration of 1.26 million newly issued shares of Euro Asia. The acquisition price will be based on Yanxi's audited net book value of approx. 63.3 million RMB or 8.64 million Euro, as of 31 March, 2016. The consideration equates a valuation of approx. 6.85 Euro per share of Euro Asia. The transaction is scheduled to close no later than 05 July, 2016.

In parallel, Euro Asia has reached an agreement with Sun Securities Limited to issue up to 2.8 million common shares of the Company at a price of 6.75 Euro on a best effort basis. This private placement is also scheduled to close no later than 05 July, 2016. The funds raised from this placement are intended to be redeployed in Yanxi for its operation.

Yanxi is a trading company which provides an efficient supply chain, dealing with major metal depositary agencies, financial institutions and large PRC industrial companies. It deals with both sourcing and supplying airplane parts, base metals and other chemical as well as industrial products. It is able to source a more efficient costs and delivery on a very cost competitive level.

For the year which ended 31 December, 2015, Yanxi as a private company, reported an audited revenue in excess of 2.8 billion RMB (approximately 380 million Euro) with a pre-adjusted and non normalized net income of 1.5 million RMB (approximately 0.20 Mio. Euro).

Daniel Zheng, CFO of Euro Asia says, "We believe that the acquisition of Yanxi along with the private placement of up to 140 million RMB will greatly enhance revenue growth and profitability to Euro Asia by improving the working capital and financial resources of Yanxi. This will allow it to reach a greater economy of scale and profitability. This is the first step of Euro Asia outside of the real estate arena of China and will enhance the value to Euro Asia shareholders as part of our ongoing corporate reorganisation."

Euro Asia intends to publish a detailed strategy update subject to successful closing of the deal. Audited financial statements for the years ending 31 December 2014, 2015, and 6 months ending 30 June, 2016 by the end of July 2016.

Contact:
Schwarz Financial Communication
Frank Schwarz
Tel: +49 611 580 2929 0
Schwarz@schwarzfinancial.com

About Euro Asia
Euro Asia is a BVI registered company, active in demand driven development of real estate projects in the Shandong area of the People's Republic of China. The Company operates locally through its subsidiaries. By utilizing its strong local network to banks, political decision makers, land owners and other developers, the Company intends to grow its position in the Shandong Province prior to moving into other regions.
For more information, please visit www.eu-asia.net

Copyright ©MMXI Euro Asia Premier Real Estate Company Limited. All rights reserved.
Not for distribution in the United States of America.