Sinomax (Zhejiang) Polyurethane Household Products Co., Ltd. entered into an acquisition agreement to acquire Shanghai Luen Tai Polyurethane Co., Ltd. from Janet Kwok and Chori Co.,Ltd. (TSE:8014) for CNY 35 million on January 23, 2015. Under the terms of the agreement, Sinomax group will make a refundable deposit of HKD 12 million (CNY 9.5 million) to Janet Kwok which shall be refunded to the group three business days after completion. Sinomax (Zhejiang) will pay as consideration CNY 25 million on completion and the remaining CNY 10 million shall be paid within 14 business days after receipt of the full amount of the refundable deposit from Janet Kwok. Janet Kwok sold 60% stake for CNY 21 million while Chori Co sold 40% stake for CNY 14 million. The transaction will be funded from internal resources of the group. As of September 30, 2014, Shanghai Luen Tai reported net asset value of CNY 37.79 million.

Completion of the transaction is subject to approval by shareholders of Sinomax Group Limited, parent of Sinomax (Zhejiang) Polyurethane Household Products Co., Ltd, submitting relevant filing to the regulatory authorities and due diligence investigation on the assets and business of Shanghai Luen Tai Polyurethane Co., Ltd. by Sinomax Zhejiang. The Board of Directors of Sinomax Group Limited, parent of Sinomax (Zhejiang) Polyurethane Household Products Co., Ltd recommended the shareholders to approve the transaction. An independent Board committee has been formed to consider, and to advise the independent shareholders of Sinomax Group on the terms of the acquisition.

Completion shall take place on the 15 business day or such other day after the fulfillment or waiver of the conditions. As of March 6, 2015, the shareholders of Sinomax Group in an Extra ordinary General Meeting approved the resolution. Beijing Securities Limited acted as a financial advisor and Tricor Investor Services Limited for the independent Board committee and the independent shareholders of Sinomax Group. The conversion was done through www.oanda.com.

Sinomax (Zhejiang) Polyurethane Household Products Co., Ltd. cancelled the acquisition of Shanghai Luen Tai Polyurethane Co., Ltd. from Janet Kwok and Chori Co.,Ltd. (TSE:8014) on January 23, 2016.