iDreamSky Technology Holdings Limited (SEHK:1119) entered into a memorandum of understanding to acquire 69.21% stake in Leyou Technologies Holdings Limited (SEHK:1089) from Novel New Limited, Port New Limited and Yuk Kwok Cheung Charles (selling shareholders) on November 29, 2019. As a part of transaction, 2.13 billion shares will be acquired, out of which 1.5 billion shares are owned by Port New, 74.1 million shares are owned by Novel New and 518.7 million shares were granted to Port New as a part of call options. Novel New Limited, Port New Limited are wholly owned by Yuk Kwok Cheung Charles. The transaction is subject to sellers and iDreamSky Technology Holdings Limited entering into a formal agreement and during the exclusivity period, the iDreamSky Technology Holdings conducting and completing all due diligence review on the Leyou Technologies Holdings. Simultaneously with the entering into of the formal agreement, (i) the selling shareholders shall enter into an agreement with the Leyou Technologies, pursuant to which the selling shareholders shall acquire from the Leyou Technologies its interests in suites 3201, 3206 and 3207, Tower Two, Lippo Centre, 89 Queensway, Admiralty, Hong Kong, completion of which shall take place simultaneously with completion of the possible share disposal; and (ii) the selling shareholders or their designated nominee shall enter into a cooperation agreement with the Leyou Technologies, pursuant to which they shall provide financing to the Leyou Technologies for the development of certain games and receive a prescribed percentage of the profit generated by such games. As of December 20, 2019, the exclusivity period has been extended to January 3, 2020. As of December 30, 2019, a fourth supplemental cooperative agreement was signed as per which the long stop date will be revised from February 29, 2020 to May 31, 2020 and the entering into of the definitive agreement will be postponed from a date falling on or before December 31, 2019 to a date falling on or before March 31, 2020. As of January 3, 2020, the exclusivity period was extended to January 12, 2020. As of January 13, 2020, the exclusivity period was extended to January 22, 2020. As of January 22, 2020, the exclusivity period was extended to January 30, 2020. As of January 30, 2020, the exclusivity period was extended to February 14, 2020. As of February 17, 2020, the exclusivity period has expired on February 14, 2020. As of March 12, 2020, iDreamSky Technology Holdings entered into an exclusivity agreement which is legally binding. The board was informed by the selling shareholders that there is no extension on the Exclusivity Period. The selling shareholders and iDreamSky Technology have reached an advanced stage of negotiation and are in the course of finalising the transaction and financing documents. The acquisition is subject to further negotiation and the execution of the formal agreement between iDreamSky Technology and the selling shareholders. As on March 27, 2020, the entering into of the definitive agreement will be postponed from a date falling on or before March 31, 2020 to a date falling on or before June 30, 2020 and the long stop date will be revised from May 31, 2020 to August 31, 2020.

iDreamSky Technology Holdings Limited (SEHK:1119) cancelled the acquisition of 69.21% stake in Leyou Technologies Holdings Limited (SEHK:1089) from Novel New Limited, Port New Limited and Yuk Kwok Cheung Charles on April 9, 2020.