PLANETREE INT'L (00613): PCL signs subscription agreement with Haotian International Construction Investment Group

PLANETREE INT'L (00613) announced that on September 17, 2025 (after trading hours), PCL (a indirectly wholly-owned subsidiary of the company) entered into a subscription agreement with subscriber Hao Tian International Construction Investment Group Limited (stock code: 1341.HK). Under this agreement, PCL has conditionally agreed to issue and allot subscription shares at a subscription price of HK$400 million (i.e. 850 shares of PCL new shares), and the subscriber has conditionally agreed to subscribe for the shares, and to pay for the 1.6 billion shares of subscription shares at a price of HK$0.25 per share upon 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 performance of PCL will continue to be consolidated in the group's financial statements. The subscriber will have an equity interest in approximately 29.8% of PCL. The subscription price of HK$0.25 per share represents a discount of approximately 7.4% compared to the subscriber's reported market price of HK$0.27 per share on the date of the subscription agreement on the Stock Exchange. The company has been actively seeking investment opportunities to ensure its long-term sustainable development and create better returns for its shareholders. The board believes that the subscription matter will bring strategic benefits to the group, with the main reasons and benefits as follows: Creating value through cross-shareholding. The group will hold approximately 14.8% of the enlarged share capital of the subscriber, forming a mutually beneficial cross-shareholding structure. This arrangement is expected to promote continued cooperation between the two parties, achieve value sharing and generate potential synergies, ultimately bringing more lucrative long-term returns to the shareholders of both entities. Optimizing the quality of the investment portfolio. Tactical and strategic investments constitute a part of the group's core business. By including the subscription shares in the company's investment portfolio in its day-to-day business processes, the company expects the subscription shares to ultimately create greater overall value for the company and its shareholders.