Yadu Technology Group Co., Ltd. entered into a memorandum of understanding to acquire remaining 51% stake in Suzhou Yadu Cloud Technology Co. Limited from TUS International Limited (SEHK:872) on January 3, 2019. Yadu Technology Group Co., Ltd. signed an agreement to acquire remaining 51% stake in Suzhou Yadu Cloud Technology Co. Limited from TUS International Limited (SEHK:872) for CNY 40.8 million on April 12, 2019. Under the terms of the transaction, Suzhou Yadu Cloud Technology Co. Limited will waive off a loan of CNY 5 million owed to it by TUS International Limited and CNY 35.8 million will be paid in cash within 12 months from the agreement date. Presently, Suzhou Yadu Cloud Technology is owned as to 51% by TUS International and 49% by Yadu Technology, respectively. Upon completion, Suzhou Yadu Cloud Technology will cease to be a subsidiary of TUS International. For the year ended December 31, 2018, Suzhou Yadu Cloud Technology Co. Limited reported net loss after tax of HKD 4.18 million (CNY 3.6 million)and net assets of HKD 86.3 million (CNY 73.9 million). The transaction is conditional upon parties obtaining all necessary approvals and consents in respect of the transaction and subject to definitive agreement. As of April 12, 2019, the transaction is subject to all the requisite approvals pursuant to the laws in Hong Kong and China. Transaction was approved by shareholders of TUS International Limited on June 26, 2019. An independent board committee will be formed to advise on the transaction. Gram Capital Limited acted as financial advisor to the independent board committee. The proceeds will be used for funding business development opportunities and general working capital needs.