China Investments Holdings Ltd. (SEHK:132) entered into an acquisition agreement to acquire Southern Limited from Prize Rich Inc for approximately HKD 490 million on June 5, 2014. China Investments will acquire 0.01 million shares of Southern Limited and in consideration will issue 524 million of its shares and HKD 166.2 million of convertible bonds. Southern Limited reported revenues of HKD 0.46 million, profit before taxation of HKD 51.37 million, profit after taxation of HKD 51.35 million and net assets of HKD 271.06 million for the year ended December 31, 2013.

The transaction is subject to approval of independent shareholders of China Investments Holdings, the Executive Director of the Corporate Finance Division of the Securities and Futures Commission of Hong Kong having granted Whitewash Waiver, approval of Stock Exchange for the listing and trading of the consideration shares and the conversion shares on the Stock Exchange, all necessary authorizations under the applicable rules and regulations having been obtained from relevant authorities, including the Nanhai District of Foshan City Public Assets Administration Commission and Foshan City Nanhai District People's Government in relation to the transaction, Chen Xiaohua, Huang Zinong and Wang Yongzhe and China Investments Holdings having completed all procedures and obtained all approvals under the applicable laws for the execution and performance of the agreement and related documentation, and the debt transfer agreement having been completed. The shareholder meeting of China Investments is scheduled on July 16, 2014. The Directors recommend the shareholders to vote in favor of the transaction. The conditions are expected to be completed by August 31, 2014. As on July 16, 2014, China Investments shareholders approved the acquisition agreement. As of August 29, 2014, it was announced that completion of the acquisition will be deferred to a date falling on or before October 31, 2014 pending the finalisation of certain completion documents.

Associated Surveyors & Auctioneers Limited acted as valuer, HLM CPA Limited acted as accountant, King & Land Law Firm acted as legal advisor, Tricor Progressive Limited acted as registrar and SG Securities (HK) Limited acted as financial advisor for China Investments Holdings. Alan Fung and Hickman Wong of Octal Capital Limited acted as financial advisor for Independent Board Committee and Independent shareholders of China Investments Holdings.

China Investments Holdings Ltd. (SEHK:132) completed the acquisition of Southern Limited from Prize Rich Inc on October 13, 2014. All conditions for the transaction have been fulfilled.