Sinochem Group entered into a share transfer agreement to acquire a 20.52% stake in Qinghai Salt Lake Industry Co., Ltd. (SZSE:000792) from Sinochem Fertilizer Company Limited for CNY 8.1 billion on October 24, 2017. Under the terms, Sinochem Group will acquire 571.58 million shares of Qinghai Salt Lake Industry Co., Ltd. The consideration shall be paid in cash in two installments of 30% and 70% each. First installment of 30% shall be paid within five business days of signing of the agreement and the second installment shall be paid within sixty business days after obtaining the approval of State Owned Assets Supervision and Administration Commission of the State Council of China (SASAC). Post completion of the transaction, Sinochem Fertilizer Company Limited will cease to hold any stake in Qinghai Salt Lake Industry Co., Ltd. The transaction is subject to the approval of the independent shareholders of Sinofert Holdings Limited (SEHK:297), the parent of Sinochem Fertilizer Company Limited, obtaining of all internal approvals by Sinochem Group and Sinochem Fertilizer Company Limited and the approval of SASAC. Zhang Wei and Yang Lin, being Directors of Sinofert Holdings Limited, abstained from voting on the Board resolution passed to approve the transaction. If the conditions are not satisfied by June 30, 2018, either party shall have the right to terminate the transaction and refund all the moneys paid by Sinochem Group. Sinofert Holdings Limited formed an independent Board committee comprising all independent non-executive Directors, namely Ko Ming Tung, Edward, Lu Xin and Tse Hau Yin, Aloysius to advise the independent shareholders in respect of the transaction. Special General Meeting of the Sinofert Holdings Limited to be held on December 20, 2017. As on December 20, 2018, shareholders of Sinofert Holdings Limited approved the transaction. Sinofert Holdings Limited intends to use the sale proceeds of CNY 4 billion for repaying group's outstanding loans and the remaining for future strategic development and normal business operations. Somerley Capital Limited acted as the independent financial advisor to the independent Board committee and the independent shareholders of Sinofert Holdings Limited. KPMG Hong Kong acted as accountant to Sinofert Holdings Limited. Sinochem Group completed the acquisition of 20.52% stake in Qinghai Salt Lake Industry Co., Ltd. (SZSE:000792) from Sinochem Fertilizer Company Limited on May 18, 2018.