AF Global Limited on Feb, 09 2026 said it has signed definitive agreements to divest its 55% interests in two Xuzhou-based joint ventures, potentially raising 27.17 million Singapore dollars under a court-supervised liquidation process in China.
The group’s wholly owned unit L.C. Logistics Pte. Ltd. will sell its 55% stake in Xuzhou Yinjian LumChang Real Estate Development for 142 million renminbi (about 26.24 million Singapore dollars), of which 44.99 million renminbi (8.31 million Singapore dollars) will be paid in cash and the balance settled through the assignment of shareholder loans.
Separately, subsidiary Hillgate Investment Pte. Ltd. has agreed to transfer its 55% interest in Xuzhou Real Estate Services (XZRES) to the same Chinese partner for 5 million renminbi (0.92 million Singapore dollars). Completion of this second sale is conditional on the first transaction closing by Jun, 30 2026.
If both deals proceed, AF Global will receive total consideration of 147 million renminbi (27.17 million Singapore dollars), including 49.99 million renminbi (9.24 million Singapore dollars) in cash and property assets valued at 97.01 million renminbi (17.93 million Singapore dollars). After deducting estimated commissions, taxes and fees, net proceeds are expected to range between 17.56 million and 20.31 million Singapore dollars depending on whether a planned asset write-down is recognised.
Based on Singapore Exchange Rule 1006, the disposals represent 23.61% of the company’s market capitalisation, classifying the transactions as a major disposal. AF Global has applied to the bourse for a waiver of the requirement to seek shareholder approval; if the waiver is denied, an extraordinary general meeting will be convened. Major shareholders holding about 72.6% of voting rights have indicated they will support the transactions if a vote is required.
The company estimates a net loss of about 16.41 million Singapore dollars from the disposals, rising to 19.17 million Singapore dollars if the asset write-down is taken. AF Global said use of proceeds is restricted to general corporate purposes for now because of its pending scheme of arrangement with AFG Investment Pte. Ltd. under the Singapore takeover code.