China Flavors and Fragrances Company Limited (SEHK:3318) entered into memorandum of understanding to acquire business and assets of Shenzhen Da Herong Spice Company Limited. on December 22, 2015. Under the terms of the agreement, China Flavors and Fragrances Company Limited will pay CNY of 60 million as refundable deposit. In a related transaction China Flavors and Fragrances Company Limited entered into memorandum of understanding to acquire Shenzhen Huiji Company Limited and Hainan Central South Island Spice and Fragrance Company Limited. The transaction will be funded from internal resources. The transaction is subjected to satisfaction of the due diligence. Due diligence will be completed within a period of two months and formal agreement will be entered into within five business days upon satisfaction of the due diligence. The Board of Directors of China Flavors And Fragrances Company Limited are of view that the terms of the transactions are fair and reasonable and are in the best interest of China Flavors And Fragrances Company Limited and its shareholders. On February 3, 2016, it was announced that as additional time is required for China Flavors and Fragrances Company Limited to conduct the said due diligence on the relevant vendor’s business, the parties agree that China Flavors and Fragrances shall pay a further refundable deposit of CNY 5 million to extend the said 2 months period to March 31, 2016. China Flavors and Fragrances Company Limited (SEHK:3318) completed the acquisition of Shenzhen Da Herong Spice Company Limited on July 29, 2016.