CONNECTED TRANSACTION The directors of Guoco Group Limited ("GGL")
announce the entering into of a standby credit facility ("Facility")
with its subsidiary company, Guoco Land Limited ("GLL") pursuant
to a facility letter from GGL and accepted by GLL ("the Facility Letter")
on 3rd June, 1997. GGL directly holds 50.1 per cent. of the shares in GLL
and has a further attributable interest of approximately 11.49 per cent.,
as a result of GGL's 57.43 per cent. owned subsidiary, First Capital Corporation
Ltd holding 20 per cent. of the shares of GLL. Under the Facility Letter, GGL has agreed to provide a
standby credit facility of up to HK$350 million to GLL, for the purpose
of meeting GLL's working capital requirements from time to time and to
support the development of GLL as the Hong Kong and People's Republic of
China property development arm of the Guoco Group. The Facility will be
provided to GLL on terms that are better than the ordinary commercial terms
available to GLL, shall be unsecured, rank pari passu with other unsecured
borrowings and be repayable by GLL on demand. GLL is a connected person in relation to the Facility
under the Rules Governing the Listing of Securities on the Stock Exchange
of Hong Kong Limited ("the Listing Rules"). However, as the Facility
is for a total aggregate amount which is less than 3 per cent. of the net
tangible asset value of GGL, as shown in its most recently published accounts,
the provision of the Facility is permitted in accordance with Rule 14.25(1)
of the Listing Rules, without any requirement for approval by shareholders.
Details of the Facility will, in accordance with the Listing Rules, be
included in the next published annual report and accounts of GGL. The principal activity of GGL is to act as an investment
holding company for the Guoco Group and the principal activities of the
Guoco Group include provision of financial services. In the past, GGL has
raised funds and provided loans and other financial support to its subsidiaries. Hong Kong, 3rd June, 1997
ANNOUNCEMENTS
The Stock Exchange of Hong Kong Limited takes no responsibility
for the contents of this announcement, makes no representation as to its
accuracy or completeness and expressly disclaims any liability whatsoever
for any loss howsoever arising from or in reliance upon the whole or any
part of the contents of this announcement.
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