Xinduo Yu, President and Chief Executive Officer of Hanfeng Evergreen Inc. (TSX:HF) made a non-binding proposal to acquire remaining 79.57% stake in Hanfeng Evergreen Inc. (TSX:HF) from 2089259 Ontario Ltd., Beutel Goodman & Company Ltd., Beidahuang Agriculture Development Limited and other shareholders for approximately CAD 110 million in cash on January 8, 2013. Xinduo Yu will pay CAD 2.2 in cash for each outstanding common share of Hanfeng Evergreen Inc. The Board of Directors has formed a special committee of independent Directors consisting of Loudon Owen (Chairman), Edwin Nordholm and David Thomson to review the proposal. The special committee of independent directors is reviewing the proposal, and as a result has postponed its annual shareholders' meeting until February 13, 2013.

As on February 11, 2013, Xinduo Yu, President and Chief Executive Officer of Hanfeng Evergreen Inc. (TSX:HF) signed an agreement has been signed to acquire 79.57% stake in Hanfeng Evergreen Inc. from 2089259 Ontario Ltd., Beutel Goodman & Company Ltd. and other shareholders. As per the deal, Xinduo Yu will pay CAD 2.25 in cash for each share outstanding. Termination fee payable by Xinduo Yu is CAD 0.75 million. The deal is subject to courts approval, regulatory approvals, approval of at least two-thirds of the shareholders of Hanfeng Evergreen, a majority of the votes cast by minority Shareholders and certain other customary closing conditions. The transaction was unanimously approved by Board of Directors and special committee of independent directors. Hanfeng's annual and special meeting is rescheduled to March 15, 2013. The closing of the transaction is expected prior to this meeting in March 2013.

As on March 12, 2013, the closing has been extended to a date not later than April 30, 2013. The extension is made so that Xinduo Yu gets time to arrange the required financing to complete the transaction. The special committee of independent directors has unanimous recommended the transaction that it is in the best interests of Hanfeng Evergreen and recommended the shareholders to vote in favor of the transaction. As of March 15, 2013, Hanfeng shareholders approved the transaction.

As of April 23, 2013, Hanfeng Evergreen received a request for extension beyond the current outside date of April 30, 2013 for completion of the transaction. The further extension has been sought to provide the Xinduo Yu with more time to arrange the required financing to complete the privatization transaction. As of April 30, 2013, Hanfeng Evergreen Inc. has granted a temporary extension beyond the current outside date of April 30, 2013 to May 3, 2013 to give additional time to negotiate the terms and conditions of a possible further extension.

As on May 3, 2013, Hanfeng Evergreen Inc. agreed to grant Xinduo Yu, an extension to a date up to but not later than July 3, 2013 to complete the deal. The extension may expire earlier than July 3, 2013 if certain milestones have not been achieved by May 15, 2013 and June 6, 2013. The extension will provide Xinduo Yu with further time to arrange the required financing to complete the transaction.

As on July 4, 2013, Xinduo Yu obtained required funding to complete the transaction. Xinduo Y will receive CAD 85 million in debt financing by Nongken Longgang Agriculture Investment Co., Limited and balance CAD 25 million, directly from Xinduo Yu. The parties are contemplating an outside closing date of July 3, 2013. As announced on August 28, 2013, debt financing commitment provided by Nongken has expired and is not longer available to Xinduo Yu. According to go shop rights granted to Hanfeng Evergreen, Hanfeng Evergreen is in negotiations with third parties.

Deloitte LLP acted as fairness opinion provider and financial advisor for an advisory fee of CAD 0.30 million and Osler, Hoskin & Harcourt LLP acted as legal advisor for special committee of Hanfeng Evergreen Inc. Kevin O'Connor of Spinnaker Capital Markets Inc. acted as public relations advisor for Hanfeng Evergreen Inc. Kingsdale Shareholder Services Inc. acted as information agent to Hanfeng Evergreen for a fee of CAD 0.05 million. Equity Financial Trust Company acted as transfer agent and depositary to Hanfeng Evergreen. Ava G. Yaskiel and Pierre Dagenais of Norton Rose Canada LLP acted as legal advisors for Xinduo Yu. Emmanuel Pressman of Osler, Hoskin & Harcourt LLP and Ross F. McKee of Blake, Cassels & Graydon LLP acted as legal advisor to Hanfeng Evergreen Inc.

Xinduo Yu, President and Chief Executive Officer of Hanfeng Evergreen Inc. (TSX:HF) cancelled the acquisition of remaining 79.57% stake in Hanfeng Evergreen Inc. (TSX:HF) from 2089259 Ontario Ltd., Beutel Goodman & Company Ltd., Beidahuang Agriculture Development Limited and other shareholders on January 8, 2014. Hanfeng claimed the termination fees of CAD 0.75 million with respect to this transaction.