GRAND MING (01271) announced that as of the announcement date, Wellford Properties has not entered into any definitive agreement with potential buyers regarding the potential transaction, and the exclusivity period ended on September 15, 2025. On September 22, 2025, the company entered into a non-legally binding indicative term sheet with an interested buyer, pursuant to which the company intends to dispose of, and the interested buyer or any of its designated affiliates intends to acquire, the entire portfolio of the Group's four data center projects. This will include the acquisition of the entire equity interest in Wellford Properties Holdings Limited (WPHL) following an internal reorganization (the WPHL Disposal), as well as the acquisition of the entire equity interest in Wellford Properties Limited (Wellford) (collectively, the "Potential Disposal").
As of the announcement date, both WPHL and Wellford are wholly-owned subsidiaries of the Group. The Potential Disposal is subject to the execution of a definitive sale and purchase agreement by both parties and the negotiation and agreement of the terms thereof. The total potential consideration for the Potential Disposal is HK$5.25 billion.
As part of the transaction, it is expected that immediately upon signing the definitive sale and purchase agreement, WPHL will undergo an internal reorganization to hold the entire equity interest in the following companies (the Target Group): Wichuang Limited, a company incorporated under Hong Kong law primarily engaged in holding and leasing a data center named iTech Tower 2; Yueji Development Limited, a company incorporated under Hong Kong law primarily engaged in developing a data center named iTech Tower 3.1; Jindafu Limited, a company incorporated under Hong Kong law primarily engaged in developing a data center named iTech Tower 3.2; and GRAND MING Data Center Limited, a company incorporated under Hong Kong law primarily engaged in providing data center premises and facilities.
Simultaneously, Wellford (a company incorporated under Hong Kong law and wholly owned by WPHL, primarily engaged in holding and leasing a data center named iTech Tower 1) will be spun off from WPHL.
The announcement stated that the Group has currently received a term sheet from the interested buyer to negotiate the acquisition of all four data centers held by the Group. The Board believes that this single, comprehensive transaction offer for the entire data center asset portfolio is strategically advantageous and brings greater certainty and value to the Group's deleveraging objectives.
Should the Potential Disposal materialize, it is expected that the majority of the net proceeds will be used to repay the Group's bank borrowings, thereby reducing most of its debt, lowering its financial costs, and enabling the reallocation of financial resources to future development and growth opportunities. Therefore, the Board believes that entering into the term sheet and the Potential Disposal (if realized) are currently in and will be in the overall interests of the Company and its shareholders.