Kaisa Group Holdings Ltd. (SEHK:1638) entered into an agreement to acquire 96.8% stake in Beijing Yaohui Real Estate Co., Ltd. from Kwok Ying Shing for CNY 13 billion on March 25, 2021. Under the terms, Kaisa Group Holdings will pay the consideration of CNY 9.4 billion to acquire 96.8% stake in Beijing Yaohui Real Estate Co., Ltd. and loan owed to Kwok Ying Shing and CNY 3.6 billion will be paid for loan owed to Beijing Chengyi Haotai Investment Management Co., Ltd. The loan amount owed to Kwok Ying Shing is CNY 1 billion (HKD 1.2 billion) and the loan amount owed to Beijing Chengyi Haotai Investment Management Co., Ltd. is CNY 3.6 billion. The sum of CNY 1 billion will be paid within 10 business days after the date of the agreement, the sum of CNY 7.4 billion will be paid within 10 business days after the completion and the balance consideration of CNY 1 billion will be paid as last installment within one year after the completion to Kwok Ying Shing. And the full amount of CNY 3.6 billion will be paid to Beijing Chengyi Haotai Investment Management Co., Ltd. within 10 business days after the completion. As of April 27, 2021 the transaction is expected to complete the 30th business day after all conditions are fulfilled. The consideration will be funded by internal sources (including equity financing and/or fund raising exercise to be conducted) of the Kaisa Group and, where possible, loans from financial institutions. Post completion, Kaisa Group will hold 96.8% stake and Beijing Chengyi Haotai Investment Management Co., Ltd. will hold 3.2% stake in Beijing Yaohui Real Estate. An Independent Board Committee, comprising Rao Yong, Zhang Yizhao and Liu Xuesheng, being all the independent non-executive Directors, has been established to advise the independent shareholders in relation to the acquisition. The transaction is subject to approval from shareholders of Kaisa Group and completion due diligence. The transaction was approved by the shareholders of Kaisa Group in the extraordinary general meeting on July 2, 2021. The long stop date of this transaction is July 31, 2021. Part of the total consideration will be used by Kwok Ying Shing to repay the loan owing from him and/or his controlled companies to Sino Life and/or companies controlled by it. Red Sun Capital Limited acted as financial advisor to Kaisa Group Holdings.