Yantai Chengtong Building Decoration Engineering Co., Ltd. and Yantai Licun Construction Materials Ltd entered into a share transfer agreement to acquire 60% stake in Ley Choon (Yantai) Eco-Green Construction Material Ltd. from Ley Choon Group Holdings Limited (Catalist:Q0X) for CNY 24 million on March 31, 2020. Of the CNY 24 million consideration, CNY 18 million will be paid by Yantai Chengtong Building Decoration Engineering Co., Ltd. for 45% stake in Ley Choon (Yantai) Eco-Green Construction Material Ltd., while CNY 6 million will be paid by Yantai Licun Construction Materials Ltd for 15%. CNY 5 million is to be paid on or before April 30, 2020, CNY 5 million to be paid on or before October 1, 2020, and the remaining CNY 14 million to be paid on or before December 31, 2020. Post acquisition, Ley Choon Group Holdings Limited will decrease its stake in Ley Choon (Yantai) Eco-Green Construction Material Ltd. from 100% to 40%. For the year 2019, Ley Choon (Yantai) Eco-Green Construction has revenues of SGD 0.531 million (CNY 2.7 million) and loss after tax of SGD 0.980 million (CNY 5.1 million). Following completion, the board of directors of LCYT will comprise Toh Choo Huat (the Executive Chairman and Chief Executive Officer of Ley Choon Group Holdings Limited), one director nominated by Yantai Chengtong Building Decoration Engineering Co., Ltd. and one director nominated by Yantai Licun Construction Materials Ltd, with Toh Choo Huat assuming the position of Managing Director. The buyers will also nominate the general manager and legal representative of LCYT and collectively would have control over the business operations of LCYT. Toh Kok Hean Brayden will be nominated by Ley Choon Group Holdings Limited to be the supervisor of LCYT. The acquisition is conditional upon approval of the board of directors of Yantai Chengtong Building Decoration Engineering Co., Ltd., Yantai Licun Construction Materials Ltd, Ley Choon Group Holdings Limited and Ley Choon (Yantai) Eco-Green Construction Material Ltd. Completion of the acquisition shall take place on the date falling 60 days from the date of receipt of the third and final instalment of the consideration. Ley Choon Group Holdings Limited intends to use 100% of the net cash proceeds for repayment of bank borrowings. The transaction is expected to close in a year. Yantai Chengtong Building Decoration Engineering Co., Ltd. and Yantai Licun Construction Materials Ltd completed the acquisition of 60% stake in Ley Choon (Yantai) Eco-Green Construction Material Ltd. from Ley Choon Group Holdings Limited (Catalist:Q0X) on May 21, 2021. Post acquisition, Ley Choon (Yantai) has ceased to be a subsidiary of Ley Choon Group Holdings.