Cai Zhengfeng and Zhou Renchao made a mandatory unconditional cash offer to acquire the remaining 46.49% stake in KNK Holdings Limited (SEHK:8039) from Public shareholders for HKD 45.8 million on June 9, 2022. As part of the transaction, Cai Zhengfeng and Zhou Renchao will acquire 229,192,000 shares at a price of HKD 0.2 per share. The consideration will be funded from HKD 99.5 million loan facility. An independent board committee comprise of Lai Pik Chi, Peggy, Chan Yuk Chun and Mabel Lee (being all of the independent non-executive Directors) has been established by KNK Holdings pursuant to Rule 2.1 of the Takeovers Code to make a recommendation to the Independent Shareholders in respect of the Offer, as to whether the terms of the Offer are fair and reasonable and as to the acceptance of the Offer. The Offeror proposed to the Board, after the close of the Offer, to change the name from “KNK Holdings Limited” to “China Come Ride New Energy Group Limited”. The Offeror intends to continue the principal business of KNK Holdings and has no intention to discontinue the employment of any employees. The Board of KNK Holdings currently comprises two executive Directors, namely Chung Yuk Lun and Cao Dayong and three independent non-executive Directors, namely Lai Pik Chi Peggy, Chan Yuk Chun and Mabel Lee. The Offeror intends to nominate directors (including Zhou Renchao) to the Board for appointment. The Offeror does not intend to avail itself of any power of compulsory acquisition of any Shares after the close of the Offer. As per the composite document dated August 26, 2022, the offer period period will ends on September 16, 2022, being the closing date.

Emperor Capital Limited acted as financial advisor to Cai Zhengfeng and Zhou Renchao. Alpha Financial Group Limited acted as Independent Financial Adviser to the Independent Board Committee of KNK Holdings.

Cai Zhengfeng and Zhou Renchao completed the acquisition of remaining 0.42% stake in KNK Holdings Limited (SEHK:8039) for HKD 0.41 million on September 16, 2022.