Shenzhen Pagoda Industrial Dilutes Stake in Subsidiary and Expands Related-Party Loan Facilities

Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H ( (HK:2411) ) has provided an update.

Shenzhen Pagoda Industrial (Group) Corporation Limited has agreed to dilute its stake in its wholly owned subsidiary Pagoda Commercial Management by introducing two individual investors, Mr. Tian and Mr. Lai, who will inject a combined RMB960,000 of capital and take 33.67% and 15.31% equity interests respectively, leaving the listed company with a controlling 51.02% stake and continued consolidation of the unit’s results. Concurrently, the company is formalising and expanding its financial support to Pagoda Commercial Management by converting existing RMB180 million shareholder loans into interest-bearing facilities and committing up to an additional RMB70 million of loans, all maturing in 2029 at a rate linked to the one-year Loan Prime Rate plus 20 basis points, transactions that together constitute connected transactions under Hong Kong listing rules and therefore require reporting, announcement, a circular and independent shareholders’ approval, underscoring governance scrutiny around related-party funding and capital restructuring within the group.

The most recent analyst rating on (HK:2411) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H stock, see the HK:2411 Stock Forecast page.

More about Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H

Shenzhen Pagoda Industrial (Group) Corporation Limited is a joint stock company incorporated in the People’s Republic of China and listed in Hong Kong, operating through subsidiaries such as Pagoda Commercial Management to manage and develop its commercial operations in the mainland Chinese market.

Average Trading Volume: 1,593,834

Technical Sentiment Signal: Sell

Current Market Cap: HK$3.31B

For detailed information about 2411 stock, go to TipRanks’ Stock Analysis page.