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BIRMINGHAM SPORTS HOLDINGS LIMITED
伯 明 翰 體 育 控 股 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 2309)
CHANGE IN USE OF PROCEEDS
References are made to the circular of Birmingham Sports Holdings Limited (the "Company", together with its subsidiaries, the "Group") dated 17 November 2020 (the "Circular") in relation to the disposal of interests in subsidiaries (the "Disposal") and the interim report of the Company for the six months ended 31 December 2020 (the "Interim Report"). Unless otherwise defined herein, terms in this announcement shall have the same meaning as defined in the Circular and the Interim Report.
CHANGE IN USE OF PROCEEDS
The utilisation of the net proceeds and the proposed change in use of proceeds from the Disposal are summarised as follows:
Expected timeline | ||||||||
Reallocation | for fully utilising | |||||||
Unutilised | in use of | New allocation | the remaining | |||||
amount as at | unutilised | for unutilised | proceeds (taking | |||||
Planned use | 31 December | amount of | amount of net | into account of | ||||
Purposes | of proceeds | 2020 | net proceeds | proceeds | the new allocation) | |||
HK$'million | HK$'million | HK$'million | HK$'million | |||||
Repayment of debts | 31.7 | - | 10.5 | 10.5 | By 31 May 2021 | |||
General working capital | 10.5 | - | - | - | ||||
Future investment | 10.5 | 10.5 | (10.5) | - | ||||
Total | 52.7 | 10.5 | - | 10.5 | ||||
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REASONS FOR CHANGE IN USE OF PROCEEDS
As mentioned in the Circular under the heading "Reasons for and Benefits of the Disposal and Use of Proceeds", the portion of the net proceeds originally intended for future investment will be used to repay the debts of the Group if no suitable investment opportunities can be identified. Due to the COVID-19 pandemic around the world, the management believes that it is difficult to assess how long the COVID-19 pandemic will last. Many countries or regions have either retained, reimposed or extended the quarantine measures, travel restriction and safe distancing measures to contain the COVID-19 pandemic, casting uncertainties on the investment environment. In view of this, the management intends to reallocate the Group's original plan on the use of the net proceeds for future investment to repayment of debts so as to lower the finance costs of the Group and to enhance the financial condition of the Group.
The Board considers that the aforesaid change in the use of net proceeds allows the Company to deploy its financial resources more effectively and is fair and reasonable and in the best interest of the Company and Shareholders as a whole, and will not have any material adverse effect on the existing business and operations of the Group.
Save as disclosed in this announcement, there are no other changes on the use of net proceeds of the Disposal.
By Order of the Board
Birmingham Sports Holdings Limited
Zhao Wenqing
Chairman
Hong Kong, 12 May 2021
As at the date of this announcement, the Board comprises nine Directors, namely Mr. Zhao Wenqing (Chairman), Mr. Huang Dongfeng (Chief Executive Officer), Mr. Yiu Chun Kong, Mr. Hsiao Charng Geng and Dr. Guo Honglin as Executive Directors; Mr. Sue Ka Lok as Non-executive Director; and Mr. Pun Chi Ping, Ms. Leung Pik Har, Christine and Mr. Yeung Chi Tat as Independent Non-executive Directors.
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Birmingham Sports Holdings Limited published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2021 07:23:04 UTC.