Tops Properties Limited entered into an agreement to acquire Prized Developments Limited from China Foods Limited for approximately CNY 610 million.
Prized Developments recorded revenue of CNY 288.87 million and profit after tax of CNY 35.97 million, as on December 31, 2014. Under the terms of transaction, in the event that Prized Developments incurs any loss in excess of CNY 50 million for the period from July 1, 2015 to the closing date, China Foods will be responsible for the portion of the loss in excess of CNY 50 million. An independent Board Committee has been formed to advise and provide recommendation to the independent shareholders on the agreement. China Foods will convene a general meeting of shareholders seeking approval for the transaction. The general meeting of shareholders of China Foods will be held on May 6, 2016 to consider the transaction. The Board of China Foods recommends its shareholders to vote for the transaction. China Foods intends to use the proceeds from sale to repay certain bank borrowings when they fall due and for general working capital. Centurion Corporate Finance Limited acted as the financial advisor, Jingtian & Gongcheng acted as legal advisor and Tricor Progressive Limited acted as registrar to China Foods Limited. Savills Valuation and Professional Services Limited acted as valuer in the transaction. The conversion was done by www.oanda.com as onm December 31, 2014.