Bailian (Group) Co., Ltd. entered into agreement to acquire Shanghai Lianhua Live and Fresh Food Processing and Distribution Co., Ltd. from Lianhua Supermarket Holdings Co., Ltd. (SEHK:980) for approximately CNY 380 million on May 2, 2017. In a related transaction, Hangzhou Lianhua Huashang Group Co., Ltd. entered into equity transfer agreement to acquire Yiwu City Life Supermarket Co., Ltd. from Bailian (Group) Co., Ltd. for approximately CNY 970 million. The consideration shall be settled by way of a cash payment by Bailian Group to Lianhua Supermarket Holdings within five business days from the closing date. Shanghai Lianhua Live and Fresh Food Processing and Distribution Co., Ltd. had revenues of CNY 51.9 million, net liabilities of CNY 20.6 million, total assets of CNY 112.1 million and net loss of CNY 17.8 million for the year ended December 31, 2016. An independent Board committee comprising all independent non-executive Directors has been formed to advise the independent shareholders. Independent Board committee recommends that disposal terms is fair and reasonable and recommends the independent shareholders to vote in favor of transaction. The transaction is subject to approval by the Board of Directors of Bailian (Group), approval by the shareholders of Lianhua Supermarket Holdings, approval from the shareholders of Shanghai Bailian Group Co., Limited, a controlling shareholder of Lianhua Supermarket, approval by state-owned assets regulatory body or its authorized entity, other relevant third parties and/or governmental or regulatory authorities approval, approval from creditors of Shanghai Lianhua Live and Fresh Food Processing and Distribution and conduction and completion of due diligence on all business, legal and financial matters. The Board of Directors of Shanghai Bailian Group has approved the deal. On June 20, 2017, shareholders of Shanghai Bailian Group approved the transaction. Lianhua Supermarket Holdings intends to use the proceeds of the disposal to supplement its working capital. As on July 17, 2017, the deal was approved by shareholders of Lianhua Supermarket Holdings Co., Ltd. Alan Fung and Louis Chan of Octal Capital Limited acted as financial advisor for Independent Board Committee and the Independent Shareholders of Lianhua Supermarket. Deloitte Touche Tohmatsu Certified Public Accountants LLP acted as accounted and Savills Valuation And Professional Services Ltd. acted as valuer for Lianhua Supermarket. Computershare Hong Kong Investor Services Limited acted as the scrutinizer for the vote-taking of the shareholding meeting of Lianhua Supermarket Holdings Co., Ltd.