Guangdong Investment Limited (Stock Code: 00270) (“GDI”) announced on 28 October 2025 that two wholly-owned subsidiaries—Guangdong Water Investment and Guangdong Water Holdings—each entered into an equity transfer agreement with Guangdong Yuehai Water, a wholly-owned subsidiary of Guangdong Holdings. The transactions involve acquiring interests in Target Company (Yangjiang) and Target Company (Shantou).
Under the first agreement, Guangdong Water Investment will acquire 51% equity interest in Target Company (Yangjiang) for RMB155,977,800 in cash, subject to certain adjustments. The purchaser will also assume RMB31,136,112 in unpaid capital. Under the second agreement, Guangdong Water Holdings will acquire 2% equity interest in Target Company (Shantou) for RMB70,876,400 in cash, with RMB1,176,500 credited to the target’s capital reserve. Following completion, each target company will become a non-wholly owned subsidiary of GDI, and finalizing each transaction will not be dependent on completion of the other.
According to the announcement, the highest applicable percentage ratio for these acquisitions exceeds 5% but remains below 25%, making them discloseable under Chapter 14 of the Listing Rules. As Guangdong Holdings is the ultimate controlling shareholder of GDI, the deals also qualify as connected transactions under Chapter 14A, requiring reporting, announcement, and Independent Shareholders’ approval at an extraordinary general meeting (EGM).
Post-completion, existing agreements between the target companies and Guangdong Holdings Group—covering financial services, support services, and solar power plants—will constitute continuing connected transactions. These arrangements will align with existing framework agreements already approved by GDI for related-party transactions, remaining on normal commercial terms demonstrated in prior disclosures.
A circular with further details, including an independent board committee’s recommendations and the independent financial adviser’s opinion, is expected to be dispatched on or before 24 November 2025. Completion of both acquisitions is anticipated on or after 1 January 2026, following approval by Independent Shareholders at the forthcoming EGM.