Affluent Ocean International Limited entered into a sale and purchase agreement to acquire World On Development Limited from Coastal Greenland Limited (SEHK:1124) for HKD 4.6 billion on January 13, 2018. The consideration is payable in cash. Out of the consideration, CNY 1.8 billion (HKD 2.2 billion) will be paid after closing. As on April 19, 2018, Affluent Ocean International Limited and Coastal Greenland Limited entered into a supplemental agreement to the sale and purchase agreement. As on May 11, 2018, Affluent Ocean International Limited and Coastal Greenland Limited entered into a second supplemental agreement. The consideration will be funded by internal resources. Post completion, World On Development Limited will operate as a subsidiary. For the year ended March 31, 2017, World On Development Limited reported revenue of HKD 1.07 billion, profit before tax of HKD 1.84 billion and profit after tax of HKD 1.39 billion. As at March 31, 2017, World On Development Limited reported owners’ equity of HKD 3.2 billion. The deal is subject to due diligence investigation regarding the legal issues and financial situation of World On Development Limited and its subsidiaries, relevant and necessary approvals and consents, including but not limited to governmental approvals and approval of shareholders of Coastal Greenland Limited. The controlling shareholders of Yuzhou Properties Company Limited (SEHK:1628), parent of Affluent Ocean International Limited, have approved the deal. If any of the conditions are not fulfilled within 120 days upon signing of agreement, the agreement shall terminate. As per second supplemental agreement dated May 11, 2018, the date for fulfillment of the conditions precedent set out in the sale and purchase agreement is extended to June 30, 2018. As per the circular dated May 25, 2018, the board of directors of Yuzhou Properties Company would have recommended the shareholders to vote in favor of the transaction. As per supplemental agreement dated June 29, 2018, the date for fulfillment of the conditions precedent set out in the sale and purchase agreement is extended to on or before August 31, 2018. The deal is expected to close on or before the tenth day after the fulfillment of all the conditions. Yuzhou Properties Company does not expect the acquisition to have any immediate material impact on the earnings. Deloitte Touche Tohmatsu and Ernst & Young acted as accountants for Yuzhou Properties Company.