Guotai Investment Holding Group entered into an agreement to acquire Shanghai Hongsheng Net Communication Company Limited from REDtone Asia, Inc. for CNY 28 million.

Guotai Investment Holding Group entered into an agreement to acquire Shanghai Hongsheng Net Communication Company Limited from REDtone Asia, Inc. for CNY 28 million in cash on July 25, 2014. Under the terms of the agreement consideration is payable upon completion of the signing of the share sale Agreement. Prior to the completion of the transaction, the telco related businesses, other than investment in Shanghai Qianyue Business Administration Company, shall be transferred to Shanghai Huitong Telecommunications Company Limited.

The transaction is subject to statutory approvals. The transaction is expected to close by August 2014.