China: Kingway Brewery Holdings Limited entered into a HK$200 million facility letter with a bank
The board of directors of Kingway Brewery Holdings Limited announces that the Company entered into a facility letter with a bank on 22 December 2006 for a 48-month revolving/term loan facility of up to HK$200 million.
The purpose of the Facility is to finance capital expenditure and refinance other expenses already incurred by the Company in relation to the construction of new brewery plants in Chengdu and/or Foshan.
The Facility Letter includes, inter alia, a condition to the effect that GDH Limited and/or Heineken-APB (China) Pte Ltd. shall in aggregate at all times maintain not less than 51% of the issued ordinary shares of the Company. A breach of the above condition will constitute an event of default under the Facility Letter. If such an event of default occurs, the Facility will become immediately due and repayable.
As at the date of this announcement, GDH, the controlling shareholder of the Company holds approximately 52.60% of the issued share capital of the Company and HAPBC, a substantial shareholder of the Company, holds approximately 21.43% of the issued share capital of the Company.
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