China Merchants Land Limited (SEHK:978) entered into sale and purchase agreement to acquire Coming Wealth Limited from China Merchants Properties Development Limited for approximately HKD 510 million on August 18, 2016. The consideration will be paid in cash. Under the terms of the transaction, China Merchants Land Limited will pay a total consideration of HKD 505 million, comprising of a payment of sale loan of HKD 283 million. The consideration is subject to the adjustment and will be paid within 10 business days after the Coming Wealth completion date. The maximum amount of consideration is capped at HKD 506 million considering the adjustments. The consideration shall be paid by China Merchants Land Limited in cash within 10 business days after the completion date. In a related transaction, China Merchants Land Limited (SEHK:978) entered into a sale a purchase agreement to acquire Cheuk Tat Development Limited from China Merchants Properties Development Limited for approximately HKD 610 million on August 18, 2016. The consideration will be funded by new banking facility of China Merchants Land Limited which is expected to be sufficient to cover the consideration. Post-closing, Coming Wealth Limited will become a wholly owned subsidiary of China Merchants Land Limited. For year ended December 31, 2015, Coming Wealth Limited has reported a loss after tax of HKD 0.33 million. The transaction is subject to China Merchants having completed its due diligence reviews on Coming Wealth and the Coming Wealth property and is being satisfied with the results thereof, approval from the China Merchants Land Limited shareholders and regulatory bodies. The Board of Directors of China Merchants Land Limited are of the view that the terms of the agreement are fair and reasonable and are in the interests of China Merchants Land Limited and its shareholders as a whole. An independent board committee of China Merchants Land Limited has been formed to consider and advise the independent shareholders. The Board of directors of China Merchants recommends the shareholders of China Merchants to approve the transaction. The transaction is expected to complete on the 10th business day after all the conditions precedent mentioned above have been fulfilled. As of October 11, 2016, the deal was approved by the shareholders of China Merchants Land Limited. China Merchants Securities (HK) Co., Limited acted as the financial advisor for China Merchants Land Limited. Altus Capital Limited has been appointed as the independent financial adviser of China Merchants Land Limited to advise the independent board committee and the independent shareholders. Jones Lang LaSalle Corporate Appraisal and Advisory Limited acted as independent property valuer for of China Merchants. China Merchants Land Limited (SEHK:978) completed the acquisition of Coming Wealth Limited from China Merchants Properties Development Limited on January 5, 2017.