Zhejiang Expressway Co., Ltd. (SEHK:576) agreed to acquire 4.9% stake in Shanghai Rural Commercial Bank Co., Ltd. from Rizhao Steel Co., Ltd. for CNY 2.7 billion on May 2, 2018. A total of 392 million shares will be acquired as part of the deal. The consideration shall be paid in three installments i.e. 30% to be paid within five working days after signing of the share transfer agreement, 50% to be paid within five working days after transfer of the first installment; and remaining 20% to be paid within five working days after the pledge of the target shares have been released and matters relating to the share transfer have been approved by Shanghai Rural Commercial. All of the shares held by Rizhao Steel were pledged in favor of China Minsheng Banking Corp., Ltd.

For the financial year ended December 31, 2017, Shanghai Rural Commercial reported operating income of CNY 17.9 billion, net profit of CNY 6.67 billion, total assets of CNY 776.45 billion and net assets of CNY 51.09 billion. Deal is subject to Zhejiang Expressway and Rizhao Steel having obtained internal approval and authorization in relation to the share transfer, and Zhejiang Expressway having obtained approval from the Board and Communications Group in relation to this transaction.

Zhejiang Expressway Co., Ltd. (SEHK:576) completed the acquisition of 4.9% stake in Shanghai Rural Commercial Bank Co., Ltd. from Rizhao Steel Co., Ltd. on May 31, 2018.