Sound Environmental Resources CO., Ltd. (SZSE:000826) entered into a share sale agreement to acquire 18.05% stake in Sound Global Ltd (SEHK:967) from Wen and Zhang for HKD 2.14 billion on September 14, 2014. Sound Environmental Resources will acquire 265 million share of Sound Global Ltd at HKD 8.1 per share. In a related transaction, Sound Environmental Resources signed a subscription agreement to acquire 280.37 million new shares HKD 8.10 per new share and Sound Global Ltd. signed an agreement to acquire Hubei Yi Hong Water Treatment Company Limited from Sound Environmental Resources CO., Ltd. Sound Environmental Resources will finance the transaction via its capital increase. Sound Environmental Resources will use proceeds of HKD 2.15 billion (CNY 1.7 billion) to finance the acquisition.

The transaction is subject to the subscription agreement and sale and purchase agreement to acquire Hubei Yi Hong Water Treatment Company Limited having been executed; the subscription agreement becoming unconditional; the sale and purchase agreement to acquire Hubei Yi Hong Water Treatment Company Limited becoming unconditional; the shares remaining listed and traded on the stock exchange at all times from the date of the agreement to acquire to acquire 18.05% stake in Sound Global to the date of completion; approval by independent shareholders of the subscription agreement and the sale and purchase agreement to acquire Hubei Yi Hong Water Treatment Company Limited and approval by government authorities. The Board of Directors and Independent Board Committee recommend the shareholders of Sound Global Ltd to vote in favour of the transaction. The meeting of the shareholders of Sound Global will be held on December 23, 2014.

As on September 25, 2014, the Board of Directors of Sound Environmental Resources approved the transaction. As on December 23, 2014, the transaction has been approved by the shareholders of Sound Global Ltd. The completion of the deal is expected to take place on the 5th business day or such other day as may be agreed by the parties after the date on which all of the conditions precedent shall have been satisfied or waived. Somerley Limited acted as financial advisor for Independent Board Committee and the Independent shareholders of Sound Global Ltd. Beijing Tian Yuan Kai Assets Appraisal Co. Ltd. acted as valuer in the transaction. Currency conversion was done through oanda.com as of September 29, 2014.

Sound Environmental Resources CO., Ltd. (SZSE:000826) cancelled the acquisition of 18.05% stake in Sound Global Ltd (SEHK:967) from Wen and Zhang on September 14, 2015.