Xianyang Zhongdian IRICO Group Holdings Ltd. entered into the equity transfer agreement to acquire 51% stake in Zhuhai Caizhu Industry Co., Ltd. from IRICO Group New Energy Company Limited (SEHK:438) for approximately CNY 130 million on May 3, 2018. As per the terms, consideration will be payable in a lump sum in cash by Xianyang Zhongdian IRICO to the bank account designated by IRICO Group New Energy within five days from the effective date of the agreement. Upon completion, IRICO Group New Energy will hold 49% stake in Zhuhai Caizhu and Zhuhai Caizhu will cease to be a subsidiary of IRICO Group New Energy. As of December 31, 2017, Zhuhai Caizhu Industry Co., Ltd reported net assets value of CNY 113.72 million and net profit after tax of CNY 0.29 million. The transaction is subject to fulfillment of the conditions, the assets valuation report of the transaction having been filed with and approved by the ultimate controlling shareholder of IRICO Group New Energy and approval of Independent shareholders’ of IRICO Group New Energy in the extraordinary general meeting. Extraordinary general meeting of IRICO Group New Energy shareholders will be held on June 26, 2018. As of June 1, 2018, Board of Directors of IRICO Group New Energy recommended shareholders to vote in favor of transaction. The transaction has been approved by the shareholders of IRICO Group New Energy Company Limited at the extraordinary general meeting held on June 26, 2018. The proceeds will be used to supplement working capital of IRICO Group New Energy. Octal Capital Limited appointed as financial advisor to the Independent board committee and Independent shareholders of IRICO Group New Energy. Computershare Hong Kong Investor Services Limited appointed as registrar to IRICO Group New Energy.