Zong Fuli made an offer to acquire China Candy Holdings Limited (SEHK:8182) from Xu Jinpei, Kwok Shun Tim and other shareholders’ for approximately HKD 570 million on May 12, 2017. On May 10, 2017, Xu Jinpei executed an irrevocable undertaking to sell 150 million shares amounting to 9.33% stake and Kwok Shun Tim executed an irrevocable undertaking to sell 268.2 million shares amounting to 16.68% stake. Under the terms of the transaction, Zong Fuli will pay HKD 0.3565 per share in cash. The consideration will be paid as soon as possible but in any event within seven business days following the later of the date on which the offer becomes or is declared unconditional or the date on which the duly completed acceptance of the offer and the relevant documents of title in respect of such acceptance are received by Zong Fuli to render each such acceptance complete and valid. Zong Fuli intends to finance the consideration through internal financial resources. It is intended that all existing Directors of China Candy Holdings Limited will resign after July 13, 2017. Upon closing of the offer, Zong Fuli intends to nominate new Directors to the Board. Zong Fuli has no intention to terminate the employment of any employees of the China Candy Holdings Group or to make significant changes to any employment. Zong Fuli has no intention to privatize China Candy Holdings Limited and intends to maintain the listing of the shares on the stock exchange. The transaction is subject to Zong Fuli acquiring not less than 50% stake in China Candy Holdings, shares of China Candy Holdings Limited remaining listed and traded on the GEM up to July 13, 2017 and no events up to July 13, 2017, having occurred which would make the offer or the acquisition of any of the shares under the offer void. The Independent Board committee, comprising of independent non-executive Directors, namely, Ong King Keung, Chu Wai Wa Fangus and Chiu Sai Chuen Nicholas, has been formed to advise the independent shareholders. As of June 21, 2017, Akron Corporate Finance Limited recommended the Independent Board committee to advise the independent shareholders to accept the offer and the Independent Board committee recommended the shareholders’ to accept the offer. The offer commences on June 12, 2017 and will close on July 13, 2017. David Ching of Somerley Capital Limited acted as the financial advisor to Zong Fuli. Ross Cheung of Akron Corporate Finance Limited acted as financial advisor to the Independent Board committee of China Candy Holdings Limited and Tricor Investor Services Limited acted as the registrar to China Candy Holdings Limited Zong Fuli cancelled the acquisition of China Candy Holdings Limited (SEHK:8182) from Xu Jinpei, Kwok Shun Tim and other shareholders on July 13, 2017. Minimum conditions to the offer was not satisfied.