Power Heritage Group Limited entered into a scheme of arrangement to acquire additional 52.77% stake of Jiangnan Group Limited (SEHK:1366) for HKD 1.3 billion on February 16, 2023. The Scheme will provide that the Scheme Shares will be cancelled in exchange for HKD 0.40 in cash for each Scheme Share. The Offeror intends to finance the entire cash amount required for the Proposal from external debt financing. Post transaction the offeror intends to delist the shares and Shares will be withdrawn from the Stock Exchange. The transaction is subject to shareholders approval and court approval. As of May 15, 2023, Jiangnan Group Limited shareholders at the ECG meeting approved the transaction and the court also cleared the transaction. Subject to the Scheme becoming effective, the withdrawal of the listing of the Shares on the Stock Exchange is expected to take place with effect on Tuesday, May 23, 2023. As of May 17, 2023, Scheme was sanctioned (without modification) by the Grand Court on May 16, 2023. Grand Court sanctioning the Scheme was delivered to the Registrar of Companies in the Cayman Islands for registration on May 19, 2023.

China International Capital Corporation Hong Kong Securities Limited acted as financial advisor and Joey Chau, Nelson Ni & Jacqueline Zheng of Kirkland & Ellis acted as legal advisor to Power Heritage Group Limited. Opus Capital Limited acted as financial advisor to Independent Board Committee of Jiangnan Group Limited.