Pavillon Holdings has entered into a subscription agreement with New Development Hotel Management on March 9, where the latter will subscribe for $42.94 million or RMB200 million worth of new ordinary shares in the former.
Under the agreement, Pavillon Holdings will issue some 1.047 billion new shares at the subscription price of 4.1 cents apiece.
The amount will be paid in RMB, and will be used to fund the operations of Fengchi IOT Management, including the payment of suppliers as well as creditors of Fengchi IOT.
New Development Hotel Management, a Singapore-incorporated company, is primarily in the business of hotel management. It is also an investment holding company. It also has a 100% stake in a real estate development subsidiary incorporated in the US.
Its sole shareholder and director is Shanghai-based investor, Ding Furu.
Ding has investments in various industries, including property development and hotel ownership and development. Through his investments, he has majority interest in a public company listed on the Shanghai Stock Exchange, Vohringer Home Technology and is also the owner of various hotel properties in the PRC including Courtyard by Marriott Shanghai Fengxian, The JW Marriott Hotel Shanghai Changfeng Park and Fairfield by Marriott Shanghai Jing’an.
See also: Kingsmen Creatives acquires 10% stake of Kingsmen E&E for $395,000
As at March 9, Ding holds a 0.05% stake – or 190,200 ordinary shares – in Pavillon Holdings. He is also a shareholder of Fengchi IOT through Jinmao.
Fengchi IOT is a joint venture (JV) between Pavillon Holdings’ subsidiary, Pavillon Financial Leasing, and Ding through Jinmao. Pavillon, through its subsidiary, owns a 49% stake in the JV, while Jing owns the remaining 51% through Jinmao.
Shares in Pavillon last traded at 2.2 cents before its trading halt on the morning of March 7.
