Wutong International: PCL entered into a subscription agreement with Haotian International Construction Investment Group

Wutong International(00613) announced that on September 17, 2025 (after trading hours), PCL (an indirect wholly-owned subsidiary of the company) and the subscriber Haotian International Construction Investment Group Co., Ltd.(stock code: 1341.HK) entered into a subscription agreement, pursuant to which PCL has conditionally agreed to allot and issue subscription shares (i.e. 850 new shares of PCL) at a subscription price of HK$400 million, and the subscriber has conditionally agreed to subscribe for those shares, which will be satisfied by the subscriber's allotment and issue to PCL (or its nominee), credited as fully paid, at the issue price of HK$0.25 per consideration share, on completion.
Upon completion, the company's interest in PCL will be diluted from 100% to approximately 70.2%. PCL will remain a subsidiary of the Company and the financial results of PCL will continue to be consolidated in the Group's financial statements. The subscriber will have an interest in approximately 29.8% of PCL's shares.
The issue price of HK$0.25 per consideration share represents a discount of approximately 7.4% to the closing price of HK$0.27 per share quoted by the subscriber on the Stock Exchange on the date of the subscription agreement.
The company has been actively seeking investment opportunities to ensure its long-term sustainability and create better returns for its shareholders. The Board believes that the subscription will be of strategic benefit to the Group. The main reasons and benefits are as follows:
Create value through cross-shareholding. The group will hold approximately 14.8% of the subscriber's enlarged share capital, forming a mutually beneficial cross-shareholding structure. This arrangement is expected to promote continued cooperation between the two parties, realize value sharing and generate potential synergies, and ultimately bring more substantial long-term returns to shareholders of both entities.
Optimize portfolio quality. Tactical and strategic investments form part of the Group's main business. The consideration shares are included in the company's investment portfolio in the daily and ordinary course of the Group's business.Through this move, the company expects that the consideration shares will ultimately create greater overall value for the company and its shareholders.