Huarui Fengquan Development Limited made an offer to acquire CPMC Holdings Limited (SEHK:906) from China Foods Limited (SEHK:506), Zhang Wei, Zhang Ye and Qu Hongliang for HKD 6 billion on June 6, 2024. Huarui Fengquan has offer to buy the shares at HKD 7.21. As of April 6, 2024, Zhang Wei holding 22.01% stake in CPMC has unconditionally and irrevocably agreed and undertaken to accept the Huarui Offer.

Huarui intends to finance the consideration payable under the Huarui Offer by external financing from Shanghai Pudong Development Bank Co., Ltd. acting through its Hong Kong Branch. The transaction is subject to approval by regulatory board / committee from NDRC, MOFCOMand SAFE, approval by the shareholders of Huarui Parent, subject to antitrust regulations from SAMR and (if required) the filing with Commerce Commission of New Zealand having been completed in connection with the Huarui Offer, valid acceptances of the Huarui Offer having been received, the Shares remaining listed and traded on the Stock Exchange up to the Huarui Offer, no event having occurred or already existing which would make the Huarui Offer or the acquisition of any of the Shares void, unenforceable, illegal, impracticable or would prohibit implementation of the Huarui Offer or impose any material and adverse conditions or obligations with respect to the Huarui Offer. The Board of Directors of CPMC Holdings Limited formed a special committee for the transaction.

If Huarui acquires not less than 90% of the Huarui Offer Shares (as required by Section 693 of the Companies Ordinance) and not less than 90% of the Disinterested Shares within the Compulsory Acquisition Entitlement Period, Huarui intends to privatize CPMC by exercising the compulsory acquisition rights. Within 21 days after the date of this joint announcement or such later date as the Executive may approve, Huarui is required to dispatch an offer document in relation to the Huarui Offer. The offer is expected to close on January 6, 2025.

China Securities Corporate Finance Company Limited acted as financial advisor for Huarui Fengquan Development Limited.