Liu Xiaolin entered into a sale and purchase agreement to acquire an additional 51.5% stake in Rui Kang Pharmaceutical Group Investments Limited (SEHK:8037) from China Wah Yan Healthcare Limited (SEHK:648) for approximately HKD 210 million on June 15, 2017. Under the terms, Liu Xiaolin will acquire 406.02 million shares at HKD 0.51 per share. Upon completion of the transaction, Liu Xiaolin will hold 499.84 million shares, representing 63.4% stake in Rui Kang Pharmaceutical Group Investments Limited and China Wah Yan Healthcare Limited will cease to hold any interest in Rui Kang Pharmaceutical Group Investments Limited. The consideration will be paid as HKD 50 million upon signing of the agreement and the remaining balance of HKD 157.07 million on completion.

The transaction is subject to the approval of the shareholders of China Wah Yan Healthcare Limited, the trading of the Rui Kang Pharmaceutical Group Investments Limited shares not having been suspended for a period longer than fourteen consecutive trading days save for any temporary suspension, the listing of the Rui Kang Pharmaceutical Group Investments Limited shares not having been cancelled or withdrawn, and other conditions. If the conditions are not fulfilled/waived on or before September 15, 2017 (or such other date as agreed by the parties), the agreement shall terminate and the deposit will be refunded within 3 business days after the termination of the agreement. An independent Board committee was established by China Wah Yan Healthcare Limited to advise the independent shareholders in respect of the transaction. China Wah Yan Healthcare Limited intends to apply the proceeds of the sale for the purposes of general working capital, repayment of debts and potential investment opportunities. Nuada Limited acted as a financial advisor to Rui Kang Pharmaceutical Group Investments Limited. HLB Hodgson Impey Cheng Limited acted as accountant and Huatai Financial Holdings (Hong Kong) Limited acted as financial advisor for China Wah Yan Healthcare Limited. Tricor Tengis Limited acted as share registrar for China Wah Yan Healthcare Limited.