Huang Guo Qiang and unknown buyers entered into a sale and purchase agreement to acquire Shanghai Ge Fung Marble & Granite Co., Ltd. from Gefung Holdings Bhd (KLSE:GEFUNG) for CNY 69 million in cash on February 28, 2012. Upon signing of the agreement, the buyer shall pay 10% of the total consideration to the designated bank account of Gefung as deposit and the balance of 90% of the consideration shall be paid to the designated bank account to be advised by Gefung within fourteen days upon approval from the shareholders of Gefung. Upon completion, Shanghai Ge Fung Marble & Granite will cease to be a subsidiary of Gefung. Shanghai Ge Fung Marble & Granite reported revenues of MYR 12.7 million (CNY 25.38 million), loss after tax of MYR 13.3 million (CNY 26.7 million), loss before tax of MYR 13.93 million (CNY 27.85 million), total assets of MYR 57.8 million (CNY 115.54 million) and net assets of CNY 80.7 million for the year ending December 31, 2011. The agreement shall be deemed as terminated if Gefung Holdings Bhd and the buyer decide to terminate the agreement through consultation with written agreement, if government authority of the PRC does not approve the transaction, if share transfer or amendment under the agreement is prohibited or restricted by laws or regulations of the PRC or in the event that the disposal is not approved by the shareholders of Gefung. In the event that Gefung breaches the terms of the agreement and it fails to rectify the breach within thirty days from the date of notice by the buyer, Gefung shall return the deposit and pay compensation equivalent to the amount of the deposit. If the buyer breaches the term of the agreement, Gefung has the right to forfeit the deposit. In the event that the buyer fails to make payment to Gefung without any basis for the delay pursuant to the agreement, the buyer shall pay liquidated damages equivalent to 8% per annum on the unpaid amount to Gefung. If the amount remains unpaid after 1 month from the due date, Gefung reserves the right to terminate the agreement. If Gefung does not obtain the approval from its shareholders within the time frame specified in the agreement, Gefung shall pay liquidated damages equivalent to 8% per annum on the amount unpaid to the buyer. The transaction is subject to approval of Gefung's shareholders and relevant authorities. The Board of Gefung is of the opinion that the transaction is in the best interest of Gefung. Board of Gefung recommended the shareholders to approve the deal. The shareholders of Gefung approved the deal on June 22, 2012. The transaction is expected to be completed by the third quarter of 2012. Gefung intends to utilise the gross proceeds from the disposal for venture into new businesses including property development which may include acquisition of strategic investments and/or strategic collaborations, joint ventures or alliances, to fulfill working capital requirements and for defraying estimated expenses in relation to the disposal. The disposal will not have any effect on the shareholdings of the substantial shareholders of Gefung and on the issued and paid-up share capital of Gefung. Public Investment Bank Berhad acted as financial advisor for Gefung Holdings Bhd. The currency conversions were made through www.oanda.com as on December 31, 2011.