HANHUA FINANCIAL HOLDING CO., LTD. Hanhua Financial Holding Co., Ltd. (SEHK:3903) entered into an agreement to acquire remaining 14.29% stake in Sichuan Hanhua Micro-credit Co., Ltd. from Chengdu Metallic Materials Co., Ltd. for approximately CNY 120 million on January 10, 2022. Hanhua Financial Holding Co., Ltd. shall pay consideration in five installments. First installment of CNY 34.8 million to be paid before January 15, 2022, three installments each of CNY 17.7 million payable before March 31, 2022, April 30, 2022 and May 31, 2022 and installment of CNY 29 million payable before June 30, 2022.
Post completion, Sichuan Hanhua Micro-credit Co., Ltd. will become wholly owned subsidiary of Hanhua Financial Holding Co., Ltd. Hanhua Financial Holding Co., Ltd. intends to settle the Consideration by internal resources. As of June 30, 2021, Sichuan Hanhua Micro-credit Co., Ltd. has reported net assets of CNY 811.75 million. The Parties shall apply for approval of the Equity Transfer from the relevant financial regulatory authority within 10 working days from the date of the agreement.
The Board of Directors of Hanhua Financial Holding Co., Ltd has approved the transaction. Completion of the Equity Transfer will take place on the date when registration with relevant regulatory authorities has been completed.
