Shenzhen Fantasia Real Estate Group Co., Ltd. and Trade Dragon Holdings Limited agreed to acquire Huizhou TCL Real Estate Development Co., Ltd from TCL Corporation (SZSE:000100), Shenzhen Hai Gu Zhou Property Development Co., Ltd. and T.C.L. Industries Holdings (H.K.) Limited for CNY 2.5 billion on December 23, 2013. As per the terms of the transaction, equity interest in Huizhou TCL Real Estate Development Co., Ltd will be acquired for CNY 164.1 million and debt will be acquired for a maximum amount of CNY 2.3 billion. The consideration for equity will be paid upon closing of the transaction. Of the total loan amount, CNY 798.9 million will be paid upon closing and the remaining will be paid after 3 years of the completion of the transaction. The consideration for the acquisition will be satisfied by internal resources of Shenzhen Fantasia Real Estate Group. Huizhou TCL Real reported net income of CNY 212.4 million for the year ending December 31, 2012. The transaction is subject to approval from the shareholders of Fantasia Holdings Group, parent of Shenzhen Fantasia Real Estate Group Co., Ltd. On December 25, 2013, Huizhou TCL Real Estate has received from Bureau of Foreign Trade and Economic Cooperation of Huizhou Municipality the approval concerning the equity transfer of Huizhou TCL Real Estate Development Co., Ltd. BDO Limited and Deloitte Touche Tohmatsu acted as accountants while Jones Lang LaSalle acted as property valuer for Fantasia Holdings Group Co., Limited.


Shenzhen Fantasia Real Estate Group Co., Ltd. and Trade Dragon Holdings Limited completed the acquisition of Huizhou TCL Real Estate Development Co., Ltd from TCL Corporation (SZSE:000100), Shenzhen Hai Gu Zhou Property Development Co., Ltd. and T.C.L. Industries Holdings (H.K.) Limited on January 6, 2014.