Shudao Capital Holding Group Co., Ltd. entered into an agreement to acquire a 44.95% stake in Chengyu Financial Leasing Company Ltd from Sichuan Expressway Company Limited (SEHK:107) for approximately CNY 300 million on June 30, 2022. Pursuant to the agreement, Shudao Capital shall pay 30% of the consideration within 5 business days from the effective date of the agreement, and the remaining consideration shall be paid starting from the sixth business day, calculating the interest on a daily basis in accordance with the latest loan prime rate (LPR) promulgated by the National Interbank Funding Center on the effective date of the agreement, and shall pay the above interest and consideration before the completion date. As of December 31, 2021, the remaining principal and interest of shareholder's loan owed by Chengyu Financial Leasing to Sichuan Expressway Company amounted to approximately CNY 880 million in aggregate. On the date falling one week prior to the completion date, Chengyu Financial Leasing shall repay to the Sichuan Expressway Company the remaining principal of the outstanding shareholder's loan and all the outstanding relevant interest accrued up to such date. The transaction has been approved by the board of directors of Sichuan Expressway Company Limited. As on August 30, 2022, Sichuan Expressway Company Limited shareholders approved the deal.

In the year ending on December 31, 2021, Chengyu Financial Leasing Company generated revenues of approximately CNY 200 million, profit before tax of CNY 28 million, profit after tax of CNY 21 million and had total assets of CNY 2.9 billion and net assets of approximately CNY 620 million.

The deal is subject to approval by regulatory authorities. The deal is expected to close by October 31, 2022.

Lego Corporate Finance Limited acted as financial advisor to Sichuan Expressway Company Limited.