Beijing Enterprse Mdcl & Hlth Ind Gp : Announcements and Notices - Completion of Major Transactions in Relation to Disposal of A Subsidiary & Financial Assistance

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(Stock code: 2389) COMPLETION OF MAJOR TRANSACTIONS IN RELATION TO DISPOSAL OF A SUBSIDIARY & FINANCIAL ASSISTANCE

Reference is made to the announcement dated 13 April 2017 and the circular dated 20 June 2017 (the "Circular") of Beijing Enterprises Medical and Health Industry Group Limited (the "Company") in relation to the Disposal and the Provision of Financial Assistance. Capitalized terms used in this announcement shall have the same meanings as those defined in the Circular unless the context requires otherwise.

COMPLETION

The Board is pleased to announce that the condition precedent in the Sale and Purchase Agreement has been satisfied on 7 July 2017 and Completion took place on 20 July 2017. Following Completion, the Disposal Company ceased to be a subsidiary of the Company and the financial results of the Disposal Company will be deconsolidated from those of the Group.

On 7 July 2017, the Lender and the Disposal Company entered into the Loan Agreement, without further cash outflow from the Group, pursuant to which the Lender has agreed to lend, and the Disposal Company has agreed to borrow, the Loan.

On 19 July 2017, in consideration for the Provision of Financial Assistance, the Purchaser and the Lender entered into a guarantee agreement in favour of the Lender to guarantee the performance of all obligations of the Disposal Company under the Loan Agreement. If the Disposal Company defaults in repaying the Loan, the Purchaser will assume the full repayment obligations for and on behalf of the Disposal Company.

By order of the Board

Beijing Enterprises Medical and Health Industry Group Limited Zhu Shi Xing

Chairman

Hong Kong, 20 July 2017

As at the date of this announcement, the Board comprises ten Executive Directors, namely Mr. Zhu Shi Xing, Mr. Liu Xue Heng, Mr. Gu Shan Chao, Mr. Qian Xu, Mr. Hu Yebi, Mr. Siu Kin Wai, Mr. Hu Xiao Yong, Mr. Hu Shiang Chi, Mr. Wang Zheng Chun and Mr. Zhang Jing Ming and five Independent Non-Executive Directors, namely Mr. Robert Winslow Koepp, Mr. Gary Zhou, Mr. Tse Man Kit, Keith, Mr. Wu Yong Xin and Mr. Zhang Yun Zhou.