Zhong Ao Home Group (HKG:1538) conditionally agreed to form a joint venture with Tokyo Universe in China, according to a Hong Kong bourse filing Friday.
Shares of the property manager fell over 1% in morning trade Monday.
The JV company is going to be owned 51% by Zhong Ao and the rest by Tokyo Universe. It will primarily be engaged in the business of AI-powered property management, building services operations, maintenance and repair services.
Zhong Ao said it will issue around 85.5 million warrants to the owners of Tokyo Universe to purchase an equal number of shares in the company at HK$0.42 apiece.
The shares would represent 10% of Zhong Ao's issued share capital and 9.09% as enlarged by the issue.