Country Garden Holdings Company Limited (SEHK:2007) entered into an agreement to acquire New Prime Investments Limited from SOCAM Development Limited for approximately CNY 390 million on January 4, 2016. Pursuant to the agreement, Country Garden Holdings will acquire the entire issued share capital of New Prime Investments for CNY 10 and will acquire the interest-free and unsecured shareholder's loan owed by New Prime Investments to SOCAM Development in an amount of approximately CNY 318.1 million. Country Garden Holdings agreed to provide a loan New Prime Investment for its settlement of SOCAM Development's Onshore Advances, amounting to approximately CNY 69.9 million. The purchase consideration shall be settled in cash. First payment of CNY 51 million shall be paid as deposit within 3 days. On completion, a total sum of approximately CNY 298.2 million shall be paid to SOCAM Development of which CNY 279.3 million shall be used in settlement of the consideration for the sale shares and as part payment of the consideration for the sale loan and the remaining CNY 18.9 million being refundable earnest money deposited by an onshore affiliate of the Purchaser into the Jointly Controlled Account before signing of the Agreement, shall be released to the Project Company for its settlement of the remaining outstanding balance of the Vendor 's Onshore Advances. At the date falling on the 180th day from the date of signing of the agreement, a sum of approximately CNY 38.8 million shall be paid to SOCAM Development in settlement of the remaining balance of the consideration for the sale loan. New Prime Investments had net loss of CNY 17.8 million for the year ended December 31, 2015 and net liabilities of CNY 23.3 million as at December 31, 2015. In the event Country Garden Holdings Company fails to make first payment, SOCAM may terminate the transaction and receive CNY 56.7 million as liquidated damages. If Country Garden Holdings Company fails to make second payment, SOCAM may terminate the transaction and forfeit the first payment and receive additional CNY 5.6 million as liquidated damages. If SOCAM fails to affect the transfer of the Sale Share and the Sale Loan to the Country Garden Holdings after receiving the payment in accordance with the terms of the agreement, Country Garden Holdings may terminate the agreement and receive from SOCAM a sum of approximately CNY 56.7 million.

The transaction is expected to be completed by January 15, 2016. SOCAM Development will use the proceeds from the sale to primarily reduce bank borrowings and for general working capital purpose.

Country Garden Holdings Company Limited (SEHK:2007) completed the acquisition of New Prime Investments Limited from SOCAM Development Limited in January 2016.