South China Assets Holdings Limited (SEHK:8155) agreed to acquire Silver Giant Limited from South China Holdings Company Limited (SEHK:413) for HKD 17.5 million on May 21, 2020. The consideration of HKD 7.4 million is payable within five business days following the completion date and HKD 10.1 million is payable within five business days upon commencement of the main construction works to be carried out in the site, which shall not be later than twenty-four months from the date of the sale and purchase agreement or such other date to be mutually agreed by the parties thereto. Post completion Silver Giant Limited will cease to become an indirect wholly-owned subsidiary of South China Holdings Company Limited but will become an indirect wholly-owned subsidiary of South China Assets Holdings Limited.

As of December 31, 2019 Silver Giant Limited reported net income of HKD 0.341 net income. The transaction is subject to obtained the approval from the independent shareholders of South China Assets Holdings Limited, due diligence investigation on Silver Giant Limited, completion of the restructuring, there having been no breach of the South China Holdings Company Limited warranties from the date of the sale and purchase agreement up to and inclusive of the completion date. As of July 14, 2020 the transaction was approved by South China Assets Holdings Limited shareholders.

The long stop date for the transaction is July 15, 2020. First Shanghai Capital Limited as the independent financial adviser to advise the independent board committee and the independent shareholders for South China Assets Holdings Limited. Jiangsu Yongrun Law Firm acted as legal advisor for South China Holdings Company Limited.