Youfu Investment Co., Ltd. entered into a sale and purchase agreement to acquire a 29% stake in CITIC Dameng Holdings Limited (SEHK:1091) from Highkeen Resources Limited for approximately HKD 910 million on October 29, 2020. As a part of transaction, Youfu Investment Co., Ltd will acquire 994.3 million shares of CITIC Dameng Holdings Limited at HKD 0.92 per share. In a related transaction, Fengxiang Investment Co., Ltd entered into a sale and purchase agreement to acquire a 5.39% stake in CITIC Dameng Holdings Limited from Highkeen Resources Limited for approximately HKD 170 million on October 29, 2020. Transaction is subject to approval from Board and shareholders of Highkeen Resources Limited and shareholders of CITIC Dameng Holdings Limited passing a special resolution to approve the change of name of CITIC Dameng at the extraordinary general meeting. In the event that any of the conditions precedent has not been fulfilled (or waived by both parties upon written consent) during the completion period, Highkeen Resources Limited is entitled to issue a written notice to Youfu Investment Co., Ltd to terminate the agreement. CITIC Resources Holdings Limited received written approval in lieu of holding a general meeting in respect of transactions, from CITIC Australia Pty Limited and Keentech Group Limited, holding approximately 59.12% of the total issued share capital of CITIC Resources Holdings Limited. Under Post-Completion Undertaking, Youfu Investment will use its best efforts, within three months following the completion of transaction, to complete the change of names of the Dameng Group Companies so that the name of each Dameng Group Company will no longer carries the name or logo of “CITIC”, and ensure that each Dameng Group Company no longer uses any CITIC trademark thereafter and during the period from the completion date on which the aforementioned name change is effected, Youfu Investment will use the CITIC trademark only in ways it is accustomed to before the completion date, and only for those having commercial purposes before the completion date, and not use or dispose of the CITIC trademark in any way beyond the permitted scope of uses. Youfu Investment Co., Ltd will pay a penalty of HKD 10 million to Highkeen Resources Limited, if it breaches post-completion undertakings. As of December 22, 2020, all conditions of the transaction have been fulfilled. Transaction is expected to complete within two months following the date on which Highkeen Resources Limited issues a written notice to Youfu Investment informing an initial internal approval from board and shareholders of Highkeen Resources Limited. Transaction is expected to close on December 17, 2020. As on December 14, 2020, the deal is postponed to January 15, 2021. CITIC Resources Holdings Limited intends to use the net proceed from divestment for replenishment of general working capital. Youfu Investment Co., Ltd. completed the acquisition of a 29% stake in CITIC Dameng Holdings Limited (SEHK:1091) from Highkeen Resources Limited on December 22, 2020.