LVGEM (China) Real Estate Investment Company Limited (SEHK:95) agreed to acquire Zhuhai Kaiwei Property Co., Ltd. for CNY 2.1 billion on November 11, 2016. The consideration will be subject to adjustment based on the actual saleable gross floor area as determined by the relevant regulatory authority. The consideration and the transfer of the sale shares will be handled by paying 10% of the consideration, equivalent to CNY 210 million, will be payable within 21 business days after the date of signing of the agreement and within 10 business days upon receipt of such amount, the vendor will transfer 10% of the sale shares to LVGEM (China) Real Estate Investment Company Limited, 70% of the consideration, equivalent to CNY 1.47 billion, will be payable within one month of the PRC Governmental authorities granting approval for the urban redevelopment of the Project. Upon the receipt of this instalment of the consideration, vendor will within 10 business days transfer 90% of the sale shares to LVGEM (China) Real Estate Investment Company Limited and terminate existing leases (if any) and the balance of 20% of the consideration, equivalent to approximately CNY 420 million subject to adjustments based on the adjustment mechanism, will be payable within one month after the Project has obtained the permit to commence construction. The consideration will be satisfied by the internal resources of LVGEM (China) Real Estate Investment Company Limited. Post closing, Zhuhai Kaiwei Property Co., Ltd. will become wholly owned subsidiary of LVGEM (China) Real Estate Investment Company Limited. LVGEM (China) Real Estate Investment Company Limited will pay a termination fee of CNY 300 million. Upon transfer of the 10% of the sale shares to LVGEM (China) Real Estate Investment Company Limited, LVGEM (China) Real Estate Investment Company Limited shall be given a right to appoint a Director to the Board of Directors of Zhuhai Kaiwei Property Co., Ltd. except that the Director will not participate in the management operations of Zhuhai Kaiwei Property Co., Ltd. The Board of Directors of LVGEM (China) Real Estate Investment Company Limited are of the view that the terms and conditions of the acquisition, including the consideration, are fair and reasonable and are in the interests of LVGEM (China) Real Estate Investment Company Limited and the shareholders as a whole. LVGEM (China) Real Estate Investment Company Limited (SEHK:95) completed the acquisition of Zhuhai Kaiwei Property Co., Ltd. on January 16, 2017.