China Xintiandi Limited entered into the sale and purchase agreement to acquire 21.89% stake in China Xintiandi Co., Ltd. from Brookfield Asset Management Inc. (TSX:BAM.A) for HKD 4.1 billion on December 28, 2018. Under the terms of the consideration, China Xintiandi Limited will pay HKD 4.07 billion for the shares and HKD 0.78 million for outstanding perpetual subordinated convertible securities in the principal amount of HKD 0.78 million. The consideration is expected to be satisfied by China Xintiandi with internal funding and/or external financing. A wholly owned subsidiary of Shui On Land Limited has also agreed to arrange a standby letter of credit or similar instrument with a commercial bank in the amount of $30 million (HKD 234.9 million) in favor of Brookfield Asset Management Inc. to secure the due performance of China Xintiandi Limited under the sale and purchase agreement. The said standby letter of credit or instrument will only become payable in case completion does not take place because of China Xintiandi Limited’s breach under the sale and purchase agreement. Upon Completion, China Xintiandi Co., Ltd. will be a wholly owned subsidiary of Shui On Land Limited. For the year ended December 31, 2017, China Xintiandi Co., Ltd. had net profit before taxation of HKD 345 million, net profit after taxation of HKD 146 million and net asset value of HKD 17.5 billion. The transaction has approved by the majority shareholders of Shui On Land Limited. The transaction will complete on March 15, 2019. SMP Partners (Cayman) Limited appointed as registrar and Jin Mao Partners acted as legal advisor to China Xintiandi Limited.