Wang On Group Limited — M&A Activity 1999

Dec 16, 1999

Listed Company Information

WANG ON GROUP<1222> - Announcement WANG ON GROUP LIMITED (Incorporated in Bermuda with limited liability) Announcement relating to the increases in the share price and trading volume of the shares of the Company The board of directors (the "Directors") of Wang On Group Limited (the "Company") announces that we are not aware of any reasons with respect of the recent increases in the price and trading volume of the shares of the Company except the reason stated below. This statement is made at the request of The Stock Exchange of Hong Kong Limited. The Directors have noted the recent increases in the price and trading volume of the shares of the Company and wish to state that except as mentioned below, the Directors are not aware of any reasons for such increases. The Company and its subsidiaries (the "Group") are in negotiation with a potential seller (who is an independent third party not connected with any of the Directors, chief executive, or substantial shareholders of the Group or any of their respective associates (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"))) in respect of an intended acquisition (the "Intended Acquisition") for shares in an associated company of the Group which is principally engaged in the operation of Chinese wet market business. It is the Group's strategy to expand its business in the Chinese wet market business and the Intended Acquisition represents a step in this connection. The Intended Acquisition is expected to be funded by internal cash resources of the Group. Should the Intended Acquisition gone through, the associated company will become a wholly-owned subsidiary of the Group and its financial results after the acquisition will be consolidated in the Group's results. The terms of the Intended Acquisition are still under negotiation and no agreement has been reached between the parties. An agreement for the Intended Acquisition may (or may not) be reached between the parties in this week. The Intended Acquisition, if it is concluded by a binding agreement, may constitute a discloseable transaction for the Company under the Listing Rules. Further announcement will be made by the Company if any binding agreement is reached between the parties. Save as aforesaid, the Directors confirm that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement, neither are they 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. Made by the order of the Board of Directors of the Company, the Directors of which individually and jointly accept responsibility for the accuracy of this statement. By Order of the Board Chan Chun Hong, Thomas Director and Secretary Hong Kong, 15th December 1999