Guangzhou Lushang Technology Development Co Ltd. entered into a share sale agreement to acquire Dong Ma (Guangzhou Free Trade Zone) Oleochemicals Co. Ltd. from Kwantas Corporation Berhad (KLSE:KWANTAS) for CNY 42.4 million on April 7, 2017. Under the terms of transaction, Guangzhou Lushang Technology Development Co Ltd. will pay CNY 0.75 million within 3 working days upon the execution of agreement and the balance of CNY 24.3 million shall be net of all liabilities assumed by Guangzhou Lushang Technology Development Co Ltd. and shall be paid by Guangzhou Lushang Technology Development Co Ltd. upon satisfaction of all the completion obligations of the change and transfer of ownership of business license. Upon completion, Dong Ma (guangzhou Free Trade Zone) Oleochemicals Co. Ltd. will cease to be a subsidiary of Kwantas Corporation Berhad. The transaction is not subject to and does not require the approval of the shareholders of Kwantas Corporation Berhad and is not conditional upon any other corporate proposals and/or arrangement undertaken or to be undertaken by Kwantas Corporation Berhad and other customary closing conditions. The proceeds from the transaction will be utilized for repayment of borrowings and working capital for Kwantas Corporation Berhad. The transaction is expected to realize a net gain on disposal of approximately CNY 4.6 million to Kwantas Corporation Berhad before taking into consideration the estimated expenses in respect of the transaction.