China Zenith Chemical Group Limited (SEHK:362) entered into a share purchase agreement to acquire an additional 23% stake in Heihe LongJiang Chemical Co. Ltd. for approximately HKD 130 million on March 18, 2016. Under the terms of the agreement, the consideration for 23 shares of in Heihe LongJiang Chemical Co. will be settled by issue of 354 million consideration shares to the vendor and the issue of promissory note in the principal amount of HKD 35 million. Heihe LongJiang Chemical Co. Ltd. reported net loss of HKD 128 million for the year ended June 30, 2015. The transaction is subject to approval of the shareholders of China Zenith Chemical Group and the Listing Committee of the Stock Exchange granting approval for listing of and permission to deal in the consideration shares. As on May 17, 2016, the Directors and independent Board Committee of China Zenith recommend the independent shareholders to vote in favor of the transaction. The shareholder meeting of China Zenith will be held on June 7, 2016 to consider the transaction. As on June 7, 2016, the shareholders of China Zenith Chemical Group Limited approved the deal. An Independent Board Committee comprising all independent non-executive Directors, namely Ma Wing Yun, Bryan, Tam Ching Ho and Hau Chi Kit has been established to advise the independent shareholders on whether the terms of the agreement are fair and reasonable and in the interests of the shareholders as a whole. The transaction will not have any impact on the assets and liabilities of China Zenith and also will have no material effect on the earnings of China Zenith. Tricor Tengis Limited acted as registrar to China Zenith Chemical Group. Amasse Capital Limited acted as financial advisor to independent board committee and shareholders of China Zenith. China Zenith Chemical Group Limited (SEHK:362) cancelled the acquisition of an additional 23% stake in Heihe LongJiang Chemical Co. Ltd. on March 18, 2017.