Zhixin Finance APP News, Capital Grand (01329) and the joint announcement by the offeror Shou Zhi Investment Holdings Limited stated that after the trading session on October 16, 2024, the offeror requested the board of directors to propose the privatization of the company to the scheme shareholders in accordance with Article 86 of the Company Law, which involves cancelling the scheme shares and paying the scheme shareholders the cancellation price of each scheme share in cash, and delisting the shares from the Stock Exchange. The company has applied to the Stock Exchange for the resumption of trading of shares from 9:00 am on October 29, 2024 (Tuesday).

The scheme stipulates that all scheme shares will be cancelled in exchange for a cash cancellation price of HK$0.85 per scheme share, at a premium of about 46.55% over the closing market price of HK$0.58 per share reported on the last trading day on the Stock Exchange.

The offeror will make an offer to perpetual convertible securities holders in accordance with Rule 13 of the Takeovers Code to acquire all outstanding perpetual convertible securities that remain unpaid and have not been redeemed or converted into shares in any other way on the effective date. The offer for the perpetual convertible securities is conditional upon the effectiveness of the scheme. In accordance with Practice Note 6 of the Takeovers Code, the offer price for the perpetual convertible securities is HK$0.40476190476 per HK$1 face value of the perpetual convertible securities.

On October 28, 2024, Unichow entered into an irrevocable commitment with the offeror as the beneficiary, whereby Unichow committed to convert all of its outstanding perpetual convertible securities into shares and vote in favor of the resolution implementing the scheme related to the Unichow committed shares.

As of the announcement date, the offeror directly holds approximately 65.72% of the issued share capital of the company, which is indirectly wholly owned by Capital City Development Group, and the Capital City Development Group is wholly owned by Capital Group. Capital Group is directly supervised by the Peking Municipal Government. The offeror's main business is investment holding.