Jason Furniture (Hangzhou) Co.,Ltd. (SHSE:603816) signed a preliminary agreement to acquire 51% stake in Natuzzi Trading (Shanghai) Co., Ltd. from Natuzzi S.p.A. (NYSE:NTZ) on January 9, 2018. As on March 22, 2018, Jason Furniture (Hangzhou) Co.,Ltd. signed an sale and purchase and subscription agreement to acquire 51% stake in Natuzzi Trading (Shanghai) Co., Ltd. from Natuzzi S.p.A. for €65 million (approximately CNY 510 million). Under the terms of the agreement, Jason Furniture (Hangzhou) Co.,Ltd. will invest a total of for €65 million (approximately CNY 510 million) of which for €35 (CNY 272.8 million) will be contributed to Natuzzi Trading (Shanghai) Co., Ltd for the subscription of a capital increase of in Natuzzi Trading (Shanghai) Co., Ltd. and €30 million (CNY 233.9 million) will be paid to Natuzzi S.p.A. as consideration for the transfer of registered capital interest from Natuzzi S.p.A. to Jason Furniture (Hangzhou) Co.,Ltd. As of December 31, 2017, Natuzzi Trading (Shanghai) Co., Ltd. reported total assets of CNY 78.8 million, net assets of CNY 10.4 million, operating revenue of CNY 186.7 million, net profit after deducting non-recurring gains and losses of CNY 20.3 million.

Natuzzi S.p.A.'s retail management team will be employed by Natuzzi Trading (Shanghai) Co., Ltd. As of June 8, 2018, the buyer was changed to Jason Furniture (Ningbo) Co., Ltd. The transaction does not need approvals from the directorate and shareholders' meeting of Jason Furniture (Hangzhou) Co.,Ltd. The completion of the transaction is subject to obtaining any applicable authorizations, regulatory filings and approvals (including approval by Jason Furniture (Hangzhou) Co.,Ltd.'s shareholders of certain agreements entered into by Natuzzi S.p.A., its subsidiary and Natuzzi Trading (Shanghai) Co., Ltd in connection with the transaction), as well as the satisfaction of other customary closing conditions. If the final agreement is not reached by March 31, 2018, the preliminary agreement shall be void. Assuming the conditions are met, it is expected that the closing will occur by August 22, 2018.