SHOUGANG INT'L<0697> - Announcement
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.
Shougang Concord International Enterprises Company Limited
(Incorporated in Hong Kong with limited liability)
Connected Transactions
The board of directors of Shougang Concord International
Enterprises Company Limited (the ``Company'') announced that
several tenancy agreements (hereunder collectively called the
Tenancy Agreements) in respect of certain residential premises
and offices have been entered into as detailed in the text of
this announcement below which constitute connected
transactions of the Company under the Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited
(the ``Listing Rules'').
(A) Tenancy Agreements for Residential Premises
(1) Date of Agreement: 30th December, 1999
Landlord: Shougang Holding (Hong Kong) Limited (``Shougang
Holding''), a substantial shareholder of the Company
Tenant: Shougang Concord Services Limited (``Shougang
Services''), a wholly-owned subsidiary of the Company
Premises: Flat E, 22/F., Hoi Tien Mansion, Taikoo Shing, Hong
Kong with an aggregate gross floor area of approximately 876
square feet
Term: 12 months commencing from 1st January, 2000 and
expiring on 31st December, 2000
Rent: Monthly rental of HK$19,000 (exclusive of rates and
service charges) payable monthly in advance
(2) Date of Agreement: 30th December, 1999
Landlord: Shougang Holding
Tenant: Shougang Services
Premises: Flat 1906B, Hongway Garden, 8 New Market Street,
Sheung Wan, Hong Kong with an aggregate gross floor area of
approximately 508 square feet
Term: 12 months commencing from 1st January, 2000 and
expiring on 31st December, 2000
Rent: Monthly rental of HK$8,500 (exclusive of rates and
service charges) payable monthly in advance
(3) Date of Agreement: 30th December, 1999
Landlord: Shougang Holding
Tenant: Shougang Services
Premises: Flat 2411, Block P, Kornhill, Quarry Bay, Hong Kong
with an aggregate gross floor area of approximately 582 square
feet
Term: 12 months commencing from 1st January, 2000 and
expiring on 31st December, 2000
Rent: Monthly rental of HK$10,500 (exclusive of rates and
service charges) payable monthly in advance
(4) Date of Agreement: 30th December, 1999
Landlord: Shougang Holding
Tenant: Shougang Services
Premises: Flat 1401, Block N. Kornhill, Quarry Bay, Hong Kong
with an aggregate gross floor area of approximately 620 square
feet
Term: 11 months commencing from 1st February, 2000 and
expiring on 31st December, 2000
Rent: Monthly rental of HK$11,000 (exclusive of rates and
service charges) payable monthly in advance
(5) Date of Agreement: 30th December, 1999
Landlord: Shougang Holding
Tenant: Long Cosmos Investment Limited (``Long Cosmos''), a
wholly-owned subsidiary of Shougang Concord Grand (Group)
Limited (``Shougang Grand'') which is a non wholly-owned
subsidiary of the Company. The shares of Shougang Grand are
listed on The Stock Exchange of Hong Kong Limited.
Premises: Flat 1816, Block P. Kornhill, Quarry Bay, Hong Kong
with an aggregate gross floor area of approximately 620 square
feet
Term: 10 months commencing from 1st March, 2000 and expiring
on 31st December, 2000
Rent: Monthly rental of HK$11,000 (exclusive of rates and
service charges) payable monthly in advance
(B) Tenancy Agreements for Offices
(1) Date of Agreement: 30th December, 1999
Landlord: Wonderfine Development Limited (``Wonderfine''),
a wholly-owned subsidiary of Shougang Holding
Tenant: Shougang Services
Premises: Portion of the 7th Floor of First Pacific Bank
Centre, 51--57 Gloucester Road, Wanchai, Hong Kong with an
aggregate gross floor area of approximately 3,250 square feet
Term: 11 months commencing from 1st February, 2000 and
expiring on 31st December, 2000
Rent: Monthly rental of HK$52,000 (exclusive of rates and
service charges) payable monthly in advance
(2) Date of Agreement: 30th December, 1999
Landlord: Wonderfine
Tenant: Long Cosmos
Premises: Portion of the 7th Floor of First Pacific Bank
Centre, 51--57 Gloucester Road, Wanchai, Hong Kong with an
aggregate gross floor area of approximately 3,250 square feet
Term: 11 months commencing from 1st February, 2000 and
expiring on 31st December, 2000
Rent: Monthly rental of HK$52,000 (exclusive of rates and
service charges) payable monthly in advance
(3) Date of Agreement: 30th December, 1999
Landlord: Billioncorp Development Limited, a wholly-owned
subsidiary of Shougang Holding
Tenant: Shougang Concord Management Company Limited, a
wholly-owned subsidiary of the Company
Premises: 5th Floor of First Pacific Bank Centre, 51--57
Gloucester Road, Wanchai, Hong Kong with an aggregate gross
floor area of approximately 7,857 square feet
Term: 10 months commencing from 1st March, 2000 and expiring
on 31st December, 2000
Rent: Monthly rental of HK$126,000 (exclusive of rates and
service charges) payable monthly in advance
The total rental payable to Shougang Holding and/or its
subsidiaries under the Tenancy Agreements is HK$3,091,000.
The aforesaid residential premises are used by the senior executives of
the respective tenants as their free quarters whilst the offices are used
by the respective tenants and/or their subsidiaries as their offices. The
terms of each of the Tenancy Agreements were reached on an arms-length
basis with reference to the prevailing market rents. The board of
directors of the Company, including the independent non-executive
directors (except for Mr. Chow Kun Chee who is not in Hong Kong and cannot
be contacted), is of the opinion that the terms of the Tenancy Agreements
are fair and reasonable and in the interests of the shareholders of the
Company.
As at the date hereof, Shougang Holding is interested in about 39.31% of
the total issued share capital of the Company. Under the Listing Rules,
the Tenancy Agreements constitute connected transactions of the Company.
Details of the Tenancy Agreements will be included in the Company's next
annual report.
By order of the board
Shougang Concord International Enterprises Company Limited
Su Genqiang
Managing Director
Hong Kong, 30th December, 1999
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