Dragonite International Ltd Announces Closing Of Disposal Of Certain Assets To Imperial Tobacco Group PLC's Fontem Holdings 1 B.V

Wednesday, 23 Oct 2013 06:58am EDT 

Dragonite International Ltd announced that with reference to the announcement made earlier, in relation to the disposal of certain assets of the Group. The Company now announced that the Closing of the disposal of the Assets, including but not limited to the Business Intellectual Property Rights in connection with the electronic cigarette business of the Group, to Fontem Holdings 1 B.V. (as the Purchaser), a wholly owned subsidiary of Imperial Tobacco Group PLC, took place on October 23, 2013. The Purchaser has satisfied payment of the Initial Purchase Price of USD50 million (approximately HKD387,500,000) upon Closing and the Deferred Purchase Price of USD15 million (approximately HKD116,250,000) and USD10 million (approximately HKD77,500,000) is due to be paid to the Group on the first anniversary and second anniversary of the Closing Date respectively. Upon Closing, the Transitional Services Agreement entered into between the Company and the Purchaser and; the respective consultancy agreements of Mr. Hon Lik and Mr. Gary Drew Douglas with members of the Purchaser ’s Group, have become effective. Mr. Gary Drew Douglas has tendered his resignation as managing director of the Company and as a member of the Board with effect from November 1, 2013 due to his new engagement. 

Company Quote

-0.1 -0.10%
1:51pm EST