Shenzhen Expressway Company Limited (SEHK:548) entered into an agreement to acquire Hunan Yichang Expressway Development Company Limited from Shenzhen Ping'an Innovation Capital Investment Co., Ltd. for CNY 1.3 billion on January 20, 2017. Shenzhen Expressway Company Limited will pay approximately CNY 640 million within 5 business days from the date of the agreement and will pay remaining approximately CNY 640 million within 5 business days upon the opening of the escrow account. The escrow amount will be released within second installment after receipt of relevant documentary proof. The above consideration will be funded by Shenzhen Expressway Company Limited internal resources and/or borrowing. Shenzhen Expressway Company Limited will operate Hunan Yichang Expressway Development Company Limited as its wholly owned subsidiary. During the year ended December 31, 2016, Hunan Yichang Expressway Development Company Limited had net profit of approximately CNY 170 million and net assets of approximately CNY 980 million. The transaction is subject to consent of lenders and relevant governmental authorities. As on January 20, 2017, the Board of Directors of Shenzhen Expressway Company Limited approved the transaction. Board of Directors of Shenzhen International Holdings Limited and Shenzhen Expressway Company Limited consider that the terms and conditions of the transaction are fair and reasonable and in the interests of Shenzhen International Holdings Limited. DP International Appraisal Limited acted as valuer in the transaction. Ernst & Young Hua Ming LLP and KPMG Hong Kong acted as an accountant to Shenzhen International Holdings Limited, parent of Shenzhen Expressway Company Limited in the transaction.