Silkwave Inc — M&A Activity 1999

Jun 28, 1999

Listed Company Information

SOUTH CHINA H<0265>&SOUTH CHINA IND<0413>-Joint Announcement The Stock Exchange of Hong Kong Limited takes no responsibility of the contents of the announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsover for any loss howsover arising from or in reliance upon the whole or any part of the contents of this announcement. SOUTH CHINA HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) SOUTH CHINA INDUSTRIES LIMITED (Incorporated in the Cayman Islands with limited liability) In relation to certain recent press articles reporting the plans for acquiring some chemical and pharmaceutical projects of South China Holdings Limited (`South China Holdings') and the listing of a subsidiary of South China Industries Limited (`South China Industries'), South China Holdings and South China Industries wish to make certain clarification as set out below. The board of directors of South China Holdings and South China Industries (the `Companies') have noted certain articles in the press on 26 June 1999 which referred to statements relating to the proposal of acquiring some chemical and pharmaceutical projects by South China Holdings, then list them in the proposed Growth Enterprise Market (`Chemical and Pharmaceutical Projects') and proposed spin off the electronic business of South China Industries and listing of Wah Shing Electronics Company Limited, a subsidiary of South China Industries (`the Spin-off'). The Board of directors of the Companies wish to confirm that the Chemical and Pharmaceutical Projects and the Spin-off have been respectively considered by South China Holdings and South China Industries. However, currently there are no concrete plans or arrangements on the Chemical and Pharmaceutical Projects and the Spin-off. The Companies at present do not have plans when to proceed with the above mentioned projects. The Companies also confirm that save as disclosed above, the joint announcement regarding the unconditional cash offer by Onswin Limited to all the issued share capital of South China Information and Technology Limited (the `Unconditional Cash Offer') on 2 June 1999 of South China Holdings and South China Industries and the announcement regarding the Unconditional Cash Offer on 19 June 1999 of South China Industries, there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement, neither is the respective Board of the Companies aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature. By Order of the Board South China Holdings Limited Yuen Kam Tim, Francis Company Secretary By Order of the Board South China Industries Limited Yuen Kam Tim, Francis Company Secretary Hong Kong Special Administrative Region of The People's Republic of China 26 June 1999