China Vanke Co. Ltd. (SZSE:000002) agreed to acquire 60% stake in Mayson Resources Limited from SRE Group Limited (SEHK:1207) for approximately CNY 550 million on October 30, 2015. The consideration consists of the payment of approximately CNY 220 million of principal loan owed by the Mayson Resources Limited to Sinopower Investment Limited. Subject to the satisfaction of all the payment conditions, the total consideration shall be paid in the following manner, on the date of signing of the formal sale and purchase agreement, a deposit of CNY 10 million needs to be paid. Approximately CNY 490 million shall be paid and the aforesaid CNY 10 million shall be refunded by the vendor to the purchaser upon the satisfaction of all the payment conditions and the remaining balance of the consideration for the subject equity interest of CNY 60 million shall be paid by the purchaser to the vendor within ten business days after the full release of these guarantee obligations. As of December 31, 2014, the net loss after tax for Mayson Resources Limited was CNY 0.004 million.

The transaction is subject to approval from third party, regulatory and government approval, approval from acquirer and seller shareholders. The transaction is also subject to Mayson Resources Limited having issued ninety-nine new shares to SRE Group Limited, appointed two new Directors and duly completed all relevant procedures. If any condition for completion is not satisfied on or before the Long Stop Date (two months following the date of the sale and purchase agreement), the sale and purchase agreement shall immediately be rescinded. Jones Lang LaSalle Corporate Appraisal and Advisory Limited acted as independent valuer to SRE Group. The conversion for loan and net loss was done using www.oanda.com as on October 29, 2015.

China Vanke Co. Ltd. (SZSE:000002) completed the acquisition of 60% stake in Mayson Resources Limited from SRE Group Limited (SEHK:1207) in January 2016.