Zhejiang Lujiu Real Estate Co., Ltd. entered into a framework agreement to acquire Hangzhou Greentown Chaoyang Real Estate Company Limited from Greentown China Holdings Limited (SEHK:3900) for CNY 5 million on January 29, 2018. The consideration shall be payable in cash and shall be paid within 10 days after the date of the agreement. Upon completion, Hangzhou Greentown will be wholly owned by Zhejiang Lujiu. As at December 31, 2017, Hangzhou Greentown reported total assets of CNY 787.8 million and total liabilities of CNY 787.78 million. The board of directors of Hangzhou Greentown shall comprise of five directors of which three will be nominated by Greentown China Holdings and two will be nominated by Wharf (Holdings) Limited (SEHK:4), parent of Zhejiang Lujiu. Wharf will have the right to appoint the chairman of the board of directors of Hangzhou Greentown. Greentown China Holdings is entitled to appoint the general manager, one of deputy general managers and the marketing director of Hangzhou Greentown. Wharf is entitled to appoint the other deputy general manager and the finance director. Each of the parties is entitled to appoint one supervisor of Hangzhou Greentown. Greentown China Holdings will be responsible for project operation and management, while Wharf will be responsible for the financial and accounting management of Hangzhou Greentown. The transaction is subject to all necessary consent, permit, license or approval, including the approval of the independent shareholders’ of Greentown China Holdings. As at April 14, 2018, the directors of Greentown China Holdings and the Independent Board Committee of Greentown China Holdings recommend that the independent shareholders vote in favor of the transaction. An Independent Board Committee of Greentown China Holdings, comprising all of the independent non-executive directors, has been formed to advise the independent shareholders of Greentown China Holdings. The transaction completion shall take place within 30 days after the agreement becomes effective. Greentown China Holdings shall use the proceeds from the transaction towards the payment of the unpaid registered capital of Hangzhou Greentown. Alan Fung and Louis Chan of Octal Capital Limited acted as financial advisors and Zhe Jiang T&C Law Firm acted as legal advisor to Greentown China Holdings. Cushman & Wakefield Limited acted as property valuer for Greentown China Holdings. Zhejiang Lujiu Real Estate Co., Ltd. cancelled the acquisition of Hangzhou Greentown Chaoyang Real Estate Company Limited from Greentown China Holdings Limited (SEHK:3900) on January 29, 2019.