Business
Disposal
Disposal.
About this update from Creo Medical Group Plc
[{"type":"text","content":"\n RNS Number : 6804F China Real Estate Opportunities PLC 18 January 2010 \n \nChina Real Estate Opportunities plc\n\nDisposal of Tangdao Bay investment at 10.9% premium to independent valuation\n\nChina Real Estate Opportunities plc (\"CREO\" or the \"Company\"), an AIM listed property company with an established investment and development property portfolio in China, today announces that it has executed an unconditional contract to dispose of its 50% interest in the Tangdao Bay joint venture development. \n\nCREO's 50% interest in the joint venture has been sold to its partner in the project, SIIC Shanghai Holdings Company (\"SIIC\"). The sale price was based on a property value of RMB1.389bn representing a 10.9% premium to the most recent independent valuation in June 2009. Net cash proceeds from the transaction amount to £33.8 million at today's exchange rates with no borrowings to be repaid from the sale proceeds and will be received upon the completion of the standard PRC regulatory procedures for the offshore repatriation of proceeds of domestic asset sales.\n\nThe sale price reinforces CREO's reported NAV, and follows on from the June 2009 disposal of CREO's interest in the City Centre 5 development at an 8.9% premium to the independent valuation of 31 December 2008.\n\nFurthermore the Company announces that due to the contracted disposal of Tangdao Bay, it has decided not to proceed with the issuance of zero dividend preference shares. In November 2009 the Company announced it was considering such an issuance to facilitate the repurchase of the Company's own ordinary shares which are trading at a significant discount to net asset value. Accordingly the Company proposes to commit up to £15 million from its cash resources to fund a tender offer for its own shares upon receipt of the Tangdao Bay sale proceeds.\n\nAt the same time the Company continues to work with its advisers to generate third party demand for its shares.\n\nCommenting, Ray Horney, CREO Chairman said: \"The CREO Board is very pleased t...