Shanghai Yuan Sheng Investment Management Company Limited, Shanghai Gu Yuan Property Development Company Limited, Shanghai Xin Kang Run Industrial Company Limited and Shanghai Guo Zheng Investment & Management Co., Ltd. entered into an agreement to acquire approximately 51.72% stake in China Smarter Energy Group Holdings Limited (SEHK:1004) from Creaton Holdings Limited, Linkage Group Limited and Cao Zhiying for approximately HKD 1.3 billion on August 19, 2016. As part of consideration, Shanghai Guozhijie agreed to an offer per share of HKD 0.33 per share. As part of the transaction, Creaton Holdings Limited will sell its entire approximately 2.24 billion China Smarter shares representing approximately 28.68% stake, Linkage will sell approximately 1 billion China Smarter shares representing approximately 13.31% stake while retaining approximately 0.04% stake while Cao Zhiying will sell 760 million shares representing approximately 9.72% stake in China Smarter. Approximately HKD 119.72 million will be settled with Creaton on the completion of deal while the remaining approximately HKD 619.96 million will be paid within twelve months. Subject to the completion of the 51.72% stake agreement, in a related transaction, a mandatory offer is triggered with Shanghai Yuan Sheng Investment Management Company Limited, Shanghai Gu Yuan Property Development Company Limited, Shanghai Xin Kang Run Industrial Company Limited and Shanghai Guo Zheng Investment & Management Co., Ltd. offering same HKD 0.33 per share for the remaining shareholders of China Smarter Energy Group Holdings Limited. The agreement is conditional upon all the three sellers selling their stakes together. The deal is conditional on completion of stake sale from each vendor. Haitong International Capital Limited acted as financial advisor to Shanghai Yuan Sheng Investment Management Company Limited, Shanghai Gu Yuan Property Development Company Limited, Shanghai Xin Kang Run Industrial Company Limited, and Shanghai Guo Zheng Investment & Management Co., Ltd. Nan Li, May Lun and Elba Ding of Paul, Hastings, Janofsky & Walker LLP acted as legal advisors for Shanghai Yuan Sheng Investment Management Company Limited, Shanghai Gu Yuan Property Development Company Limited, Shanghai Xin Kang Run Industrial Company Limited and Shanghai Guo Zheng Investment & Management Co., Ltd. Reed Smith acted as legal advisor in the transaction. Shanghai Yuan Sheng Investment Management Company Limited, Shanghai Gu Yuan Property Development Company Limited, Shanghai Xin Kang Run Industrial Company Limited, and Shanghai Guo Zheng Investment & Management Co., Ltd. completed the acquisition of 51.72% stake in China Smarter Energy Group Holdings Limited (SEHK:1004) from Creaton Holdings Limited, Linkage Group Limited and Cao Zhiying on August 25, 2016.