China Flavors and Fragrances Company Limited (SEHK:3318) entered into memorandum of understanding to acquire business and assets of Hainan Central South Island Spice and Fragrance Company Limited for approximately CNY 370 million 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. As of April 26, 2016, China Flavors and Fragrances Company Limited (SEHK:3318) entered into agreement to acquire business and assets of Hainan Central South Island Spice and Fragrance Company Limited and aggregate amount of CNY 30 million has been paid. Out of remaining, CNY 95.6 million will be paid on closing in cash, CNY 20 million if audited net profit of Hainan Central South Island Spice and Fragrance for the first year of the completion date is not less than CNY 23 million, CNY 20 million if audited net profit of Hainan Central South Island Spice and Fragrance for the second year of the completion date is not less than CNY 20 million and remaining CNY 202.4 million in form of perpetual subordinated convertible securities will be paid within 15 business days from Hainan Central South Island Spice and Fragrance completion date. In related transactions, China Flavors and Fragrances Company Limited entered into memorandum of understanding to acquire business and assets of Shenzhen Huiji Company Limited., and Shenzhen Huiji Company Limited. The transaction will be funded from internal resources. The transaction is subjected to satisfaction of the due diligence, all necessary consents and approvals from the relevant governmental or regulatory bodies. China Flavors and Fragrances undertake that it will obtain shareholders’ approval in respect of the Specific Mandate at the EGM and will apply to the Stock Exchange for the approval for the listing of and permission to deal in the conversion shares. If the said shareholders’ approval and the listing approval cannot be granted within 6 months from completion date, agreement shall be rescinded. 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. The shareholders meeting will be held on July 15, 2016. The transaction has been approved by shareholders of China Flavors and Fragrances on July 15, 2016. Tricor Investor Services Limited acted as registrar for China Flavors and Fragrances. China Flavors and Fragrances Company Limited (SEHK:3318) completed the acquisition of business and assets of Hainan Central South Island Spice and Fragrance Company Limited on July 29, 2016.