China Huarong Overseas Investment Holdings Co., Limited entered into transfer agreement to acquire 49% stake in Huarong Tianhai (Shanghai) Investment Management Company Limited from Huarong International Financial Holdings Limited (SEHK:993) for CNY 39.3 million on October 18, 2019. In related transaction, China Huarong Overseas Investment Holdings Co., Limited entered into transfer deed agreement to acquire Wide Trend Global Limited from Linewear Assets Limited. The combined consideration for both the transaction is CNY 11.23 million and will be paid in cash by China Huarong Overseas Investment Holdings Co., Limited to the bank account designated by the Huarong International Financial Holdings Limited on the date mutually agreed by both parties, which is expected to be not later than December 31, 2019. Upon Completion, Huarong Tianhai (Shanghai) Investment Management Company Limited will cease to be the subsidiary of Huarong International Financial Holdings Limited. Huarong Tianhai (Shanghai) Investment Management Company Limited reported total asset of approximately CNY 1.6 billion and total common equity of approximately CNY 47.72 million as at September 30, 2019. The board of director of China Huarong Overseas Investment Holdings Co., Limited approved the transaction. The transaction is subject to shareholders and board approval of Huarong International Financial Holdings Limited. The closing of the transaction will take place at a time mutually agreed by the parties in writing and all the condition of the transaction are met. The proceeds from the transaction will be applied towards general working capital of the group. Somerley Capital Limited acted as financial advisor to Huarong International Financial Holdings Limited.