China Household Holdings Limited (SEHK:692) entered into an agreement to acquire Kassade Investment Limited from an unknown seller for HKD 300 million on May 13, 2013. The consideration includes HKD 200 million of the bonus to be paid to the seller. Under the terms of the agreement, China Household will issue a promissory note for the consideration. The consideration is subject to downward adjustment in the event that the audited net profits after tax of Kassade Investment is lower than the above mentioned profits guarantee for any of the above mentioned periods, China Household shall adjust the consideration deducting the principal of the promissory note by the shortfall from the profit guarantee, to the extent that the deductible amount of shortfall from the profit guarantee for any one year shall not exceed HKD 20 million.

The completion of the acquisition is subject to the establishment of the WOFE, completion of all installation for the production capacity of the factory, obtaining all the production permits, licenses and any relevant documents for the processing plant. The Board announces that as additional time is required to obtain all relevant permits, licenses and approval documents, on March 13, 2014, the vendor and China Household Holdings entered into a supplemental agreement to amend certain terms of the agreement. Pursuant to the supplemental agreement, it is agreed that the long stop date shall be amended to 12 months upon signing of the agreement or such later date as may be agreed between the parties. As on May 26, 2014, the vendor and China Household Holdings entered into a supplemental agreement to amend certain terms of the agreement. Pursuant to the supplemental agreement, it is agreed that the long stop date shall be amended to July 13, 2014 or such later date as may be agreed between the parties.

Chanceton Capital Partners Limited the financial advisor and Elite Partners CPA Limited acted as accountant for China Household Holdings Limited. Dragon Appraisal Co Limited acted as independent valuer in the transaction.

China Household Holdings Limited (SEHK:692) completed the acquisition of Kassade Investment Limited from an unknown seller on July 11, 2014.