Global Link Communications Holdings Limited (SEHK:8060) entered into an agreement to acquire 60% stake in Shanghai Xunshan Information Technology Limited from Xiao Li for HKD 24 million on April 4, 2019. Under the terms of the agreement, the consideration comprises of HKD 12 million in cash and HKD 12 million by way of issue of promissory notes. Xiao Li has provided a guarantee to Global Link Communications that the audited net profit after tax of Shanghai Xunshan for the 15 months period ending March 31, 2020 shall be not less than HKD 6.2 million. In the event that the actual profit fails to meet the guaranteed profit, Xiao Li irrevocably undertakes to indemnify Global Link Communications the shortfall. It is expected that the consideration will be funded by internal resources of Global Link Communications. Upon Completion, Shanghai Xunshan Information Technology will become a non-wholly-owned subsidiary of Global Link Communications. Shanghai Xunshan had net liabilities of CNY 0.015 million (HKD 0.017 million) as of December 31, 2018. The transaction is subject to Global Link Communications being satisfied with the results of due diligence review. The transaction is not subject to the approval of shareholders of Global Link Communications. Completion shall take place on a day within five business days after the last outstanding conditions precedent shall have been fulfilled or waived. Poon Cheuk Ngai of Crowe (HK) CPA Limited acted as the accountant and RHL Appraisal Limited acted as the valuer for Global Link Communications. Global Link Communications Holdings Limited (SEHK:8060) completed the acquisition of 60% stake in Shanghai Xunshan Information Technology Limited from Xiao Li on May 10, 2019.