DeTai New Energy Group Limited (SEHK:559) entered into a sale & purchase agreement to acquire 70% interest in Colour Palace Investments Limited from Imperial Pacific International Holdings Limited (SEHK:1076) for HKD 54 million on March 20, 2020. The consideration shall be paid in cash for sale loan and 70% of the sale shares. The Consideration shall be satisfied by the DeTai New Energy Group Limited to the Vendor by way of set-off at completion. To facilitate the set-off, part of the debt in the amount of HKD 54 million will be assigned to the DeTai New Energy Group Limited by DeTai Finance at completion. Imperial Pacific International Holdings Limited is in debt to DeTai Finance in the amount of approximately HKD 55.4 million and the amount of the debt to be assigned to the DeTai New Energy Group Limited by DeTai Finance at completion shall be in the amount of HKD 54 million and the remaining balance of the debt shall be repaid by the vendor to DeTai Finance in cash at completion. For the year ending March 31, 2019, revenue and net loss was approximately HKD 0.07 million and approximately HKD 0.8 million respectively.

The transaction is subjected to the completion of DeTai New Energy Group Limited being satisfied with the results of the due diligence review, completion of Saipan Property B disposal, all necessary consents, licenses and approvals required to be obtained by parties involved, completion of the debt restructuring and completion of increase in issued share capital. As of March 20, 2020, increase in issued share capital has been completed. The transaction is expected to complete within ten business days following the fulfillment or waiver of the conditions precedent set out in the sale and purchase agreement but no later than July 31, 2020, or such other date may agree in writing. As of July 31, 2020, some of the conditions have yet to be satisfied and the companies are still in discussion about the appropriate actions to be taken in respect of the transaction.

DeTai New Energy Group Limited (SEHK:559) cancelled the acquisition of 70% interest in Colour Palace Investments Limited from Imperial Pacific International Holdings Limited (SEHK:1076) on March 20, 2021.