Shares of Yuexiu Property (00123) surged 7.11% on November 7th, as the company's subsidiary Leading Affluence secured a HK$500 million revolving loan facility from a bank for a three-year term.
The loan agreement stipulates that Yue Xiu Enterprises, Yuexiu Property's controlling shareholder, must maintain at least 30% voting shares in the company and remain the single largest shareholder with effective management control. Failing to meet these conditions would trigger immediate repayment of the loan.
In a Hong Kong bourse filing, Yuexiu Property disclosed that Yue Xiu Enterprises currently holds around 44% of the company's issued shares, satisfying the loan conditions. This sizable loan facility is expected to bolster Yuexiu Property's financial position and support its future operations and expansion plans.
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