Fortunate Soar International Limited completed the acquisition of a minority stake in Fook Lam Moon Restaurant Limited and Fook Lam Moon Restaurant Limited from Chinese Food and Beverage Group Limited.

Fortunate Soar International Limited entered into a sale and purchase agreement to acquire minority stake in Fook Lam Moon Restaurant Limited and Fook Lam Moon (Kowloon) Restaurant Limited from Chinese Food and Beverage Group Limited (SEHK:8272) on December 11, 2017. The combined transaction consideration is HKD 173.92 million. An amount of HKD 8 million in cash shall be paid as earnest money which shall be applied for part payment of the consideration at the completion and the balance of the consideration shall be paid in cash at completion. In a related transaction, Coqueen Company Limited, ultimate parent of Fortunate Soar International Limited entered into a memorandum of understanding to acquire additional 30% stake in Professional Guide Enterprise Limited from Rich Paragon Limited., a subsidiary of Chinese Food and Beverage Group Limited. For the year ended December 31, 2016, Fook Lam Moon Restaurant Limited and Fook Lam Moon (Kowloon) Restaurant Limited reported revenues of HKD 149.98 million, profit before tax of HKD 34.23 million, profit after tax of HKD 27.83 million and net assets of HKD 208.87 million. The transaction is subject to approval of shareholders of Chinese Food and Beverage Group Limited and the obtaining by Chinese Food and Beverage Group Limited of any requisite consent, approval or any relevant waiver from the bondholders to the consummation of the restructuring and the disposal. The condition shall be fulfilled by February 28, 2018. As of February 28, 2018, the extraordinary general meeting will be held on March 19, 2018. On March 19, 2018, the shareholders of Chinese Food and Beverage Group Limited approved the transaction. An independent Board committee has been established to advise the shareholders of Chinese Food and Beverage Group Limited. The transaction is expected to be completed within five business days after satisfaction of the conditions. As of March 29, 2018, the long stop date is extended to May 31, 2018. As of May 31, 2018, the long stop date is extended to June 15, 2018. As on June 15, 2018, the long stop date is extended to July 16, 2018. As of July 16, 2018, deal is postponed and now expected to close on August 20, 2018. As of August 20, 2018, deal is postponed and now expected to close on September 11, 2018. As of September 11, 2018, deal is postponed and now expected to close on October 3, 2018. As of October 3, 2018, the long stop date is extended and now expected to close on October 12, 2018. As of October 12, 2018, the long stop date is extended and now expected to close on October 26, 2018. Chinese Food and Beverage Group Limited will use the net proceeds from the disposal to settle the indebtedness. Chinese Food and Beverage Group Limited expect to record a net gain of approximately HKD43.2 million arising from the transaction. Kingston Corporate Finance Limited acted as the financial advisor to Chinese Food and Beverage Group Limited. Fortunate Soar International Limited completed the acquisition of a minority stake in Fook Lam Moon Restaurant Limited and Fook Lam Moon (Kowloon) Restaurant Limited from Chinese Food and Beverage Group Limited (SEHK:8272) on October 25, 2018. All the conditions precedent have been fulfilled.