Hao Tian International Construction Investment Group Limited (SEHK:1341) (HTICI) entered into an agreement to acquire Hao Tian International Financial Holdings Limited (HTIF) from Hao Tian Development Group Limited (SEHK:474) (HTDG) for HKD 200 million on March 28, 2018. Under the terms, the consideration of HKD 100 million will be satisfied by cash upon signing of the agreement as deposit and HKD 50 million shall be settled in cash upon completion and the remaining HKD 50 million will be satisfied by the allotment and issue of the shares to HTDG. As on June 25, 2018, Hao Tian International Construction Investment Group Limited and Hao Tian Development Group Limited entered in to a supplemental agreement pursuant to which, 125 million ordinary shares of Hao Tian International Construction Investment Group Limited will be issued upon fulfillment of conditions precedent, remaining shortfall consideration shares shall be settled on the completion day by issuing cash equivalent to the shortfall shares. As of July 24, 2018, the parties entered into a second supplemental agreement pursuant to which the total consideration was reduced from HKD 200 million to HKD 180 million which shall be satisfied by cash as HKD 100 million upon signing of the agreement as deposit and HKD 80 million upon completion of the transaction. Hao Tian International Construction Investment Group Limited will fund the acquisition by internal resources and the proceeds from placement completed on May 26, 2017. Upon completion, HTIF will become an indirect wholly-owned subsidiary of HTICI.

For the year ended March 31, 2017, HTIF had net loss of HKD 25.9 million, total assets of HKD 253 million and net assets of HKD 200 million. The transaction is subject to all necessary authorizations, consents, licenses, agreements, approvals or permissions of any kind of, from or by third parties and/or government or regulatory authorities, the licenses being valid, HTIF acquire the entire issued share capital of each of Hao Tian International Securities Limited, Hao Tian International Finance Company Limited and Hao Tian Investment Management Limited and become the only limited partner of Hao Tian Development Fund L.P., the approval of shareholders of HTICI for entering into, execution, delivery and performance of the agreement, and the transactions contemplated under the agreement, including without limitation the purchase of equity in HTIF and the issue and allotment of the consideration shares to HTDG, HTICI having obtained an approval from the Stock Exchange of Hong Kong Limited for the listing of and permission to deal in the consideration shares. As of July 24, 2018, the conditions of approval of shareholders of HTICI to issue and allot the consideration shares and approval from the stock exchange for the listing of and permission to deal in the consideration shares were removed. Additionally, completion is also subject to HTDG and HTIF setting off the indebtedness owed by HTDG to HTIF against an equivalent amount of the indebtedness owned by HTIF to HTDG; and HTDG unconditionally and irrevocably waives, releases and discharges HTIF from all its obligations and liabilities to repay any remaining indebtedness owed by it to HTDG, approval by third parties and/or governmental or regulatory authorities. As on August 30, 2018, the transaction was approved by the shareholders of Hao Tian International Construction Investment Group Limited. Completion is expected on December 31, 2018, or another date as agreed by the parties. The independent Board committee of Hao Tian International Construction Investment Group Limited recommended shareholders to vote in favor of the transaction at a meeting to be held on August 30, 2018. HTDG intends to apply the net proceeds from the disposal to the general working capital and operation of current principal business. As of July 19, 2018, Orient Capital (Hong Kong) Limited was appointed as a financial advisor to Hao Tian International Construction Investment Group Limited.

Hao Tian International Construction Investment Group Limited (SEHK:1341) (HTICI) completed the acquisition of Hao Tian International Financial Holdings Limited (HTIF) from Hao Tian Development Group Limited (SEHK:474) (HTDG) on December 13, 2018. All the conditions precedent for completion has been fulfilled.