NWS’ proposed disposal of equity interest in Xiamen Container Terminal Group for RMB1,568 million

(30 June 2021, Hong Kong) NWS Holdings Limited (“NWS” or the “Group”; HK stock code: 659) announced today that after trading hours on 30 June 2021, has entered into a Framework Agreement with Xiamen International Port Co., Ltd (HK Stock code: 3378), for the proposed disposal of its entire 20% equity interest in Xiamen Container Terminal Group Co., Ltd (“XCTG”) at a consideration of RMB1,568 million (equivalent to approximately HK$1,878 million). Upon completion of the transaction, the Group will no longer hold any equity interest in XCTG and will have fully exited all investments in port-related projects.

NWS has been optimizing its business portfolio since 2018 and has exited its Transport business as well as disposing its Environmental business over the past 12 months. The proposed disposal of its 20% equity interest in XCTG and the exit from all port-related projects are in line with the Group’s business optimization strategy.

Proceeds from the proposed disposal will be used for general working purposes but not limited to redeploy capital into businesses within our core competence, such as roads, insurance and modern logistics. Targeting investment opportunities with growth potential, lucrative returns and steady cash flow, with an aim to achieve a sustainable long-term growth. The proposed disposal also supports our sustainable and progressive dividend policy.

Eric Ma, Chief Executive Officer of NWS, said, “The proposed disposal represents an opportune time and valuation to unlock value from our assets and reallocate resources.”

Adrian Cheng, Executive Vice-chairman and Chief Executive Officer of New World Development Company Limited (“NWD”; HK stock code: 17) and Executive Director of NWS, said, “Corporate development must keep abreast of the times. In the past three and a half years, keeping up with the pace of NWD, the parent company, NWS has yielded excellent results from optimizing its business portfolio. NWS will benefit from a more simplified business portfolio and well defined development direction as well as from the strategic allocation of resources, with nearly HK$20 billion recouped from the disposal of non-core assets. Our solid financial position and business foundation have lifted NWS to a new level and are generating lucrative returns for investors and shareholders.”

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NWS Holdings Limited

NWS Holdings Limited (Hong Kong Stock Code: 659), as the diversified industries flagship of New World Development Company Limited (Hong Kong Stock Code: 17), invests and operates a wide range of businesses predominantly in Hong Kong and the Mainland. Our core business includes toll roads, commercial aircraft leasing, construction and insurance, while we also manage a strategic portfolio spanning sectors from logistics to facilities management.Please visit www.nws.com.hk for details.

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