Hospital Corporation of China Limited (SEHK:3869) entered into entered into a non-binding framework agreement to acquire Jiande Heyue Enterprise Management Co., Ltd. from Hong Jiangxin and Hong Yang for approximately CNY 480 million on July 4, 2017. Hospital Corporation of China Limited (SEHK:3869) entered into a legally binding letter of intent to acquire Jiande Heyue Enterprise Management Co., Ltd. from Hong Jiangxin and Hong Yang for approximately CNY 480 million on August 10, 2017. Hospital Corporation of China Limited (SEHK:3869) entered into a legally binding letter of intent to acquire Jiande Heyue Enterprise Management Co., Ltd. from Hong Jiangxin and Hong Yang for approximately CNY 480 million on August 10, 2017. Hospital Corporation of China Limited (SEHK:3869) entered into sale and purchase agreement to acquire Jiande Heyue Enterprise Management Co., Ltd. from Hong Jiangxin and Hong Yang on December 22, 2017. Hospital Corporation of China Limited (SEHK:3869) entered into sale and purchase agreement to acquire Jiande Heyue Enterprise Management Co., Ltd. from Hong Jiangxin and Hong Yang on December 28, 2017. The consideration will be settled in cash. CNY 120 million will be paid as refundable deposit, into an escrow account on August 30, 2017. The vendors shall refund CNY 40 million to Hospital Corporation of China Limited within 10 business days from the signing of the sale purchase agreement. The vendors shall refund CNY 80 million, the remaining deposit, to the Hospital Corporation of China Limited within 20 business days from the date of payment of the first installment of the consideration. Of the consideration, CNY 241.5 million will be paid within 10 business days after Hospital Corporation of China has received bank account details and remaining CNY 241.5 million will be paid within 10 business days after issuance of a written acknowledgement from Hospital Corporation of China of the satisfaction of conditions. Hong Jiangxin and Hong Yang directly own 99% and 1% equity interest in Jiande Heyue Enterprise Management respectively. The consideration will be funded by internal resources of Hospital Corporation of China and external loan facilities. On closing, Jiande Heyue Enterprise Management shall become wholly-owned subsidiary of Hospital Corporation of China. Upon completion of the transaction the board of Jiande Heyue Enterprise Management Co., Ltd will comprise of Hong Jiangxin, Zhang Xiaopeng and Zou Ran. If all conditions are not satisfied or waived on or before the long stop date, being December 31, 2017, then the deposit and any consideration paid shall be refunded within 20 business days from the long stop date. For the year ended December 31, 2016, Jiande Heyue Enterprise Management reported revenue of CNY 154.21 million and net profit after taxation of CNY 0.92 million. The transaction is subject to all necessary internal consents and approvals, approval from Hospital Corporation of China’s shareholder and government bodies’ approval, Hong Jiangxin and Hong Yang having agreed to waive their pre-emptive rights in respect of the equity interest in Jiande Heyue Enterprise Management; Jiande Hospital of Traditional Chinese Medicine Co., Ltd. (Hospital) having completed the real property registration for certain properties regarding their conversion from allocated land use rights to granted land use rights; the Hospital having disposed of service centers; the Hospital having obtained the confirmation from the relevant government authorities as to compliance with the relevant advertising regulations; the Hospital having renewed all relevant licenses under its own name; the Hospital having entered into employment and non-competition agreements with certain key employees of the Hospital; and there shall not be any distribution of profits or adjustment of remuneration during the period from June 30, 2017 until the completion, the vendors having granted an one-year interest free loan to each member of Jiande Heyue Enterprise Management Co., Ltd. to repay all existing loans from commercial banks, Jiande Heyue Enterprise Management Co., Ltd. having fully settled all outstanding amounts due to the vendors and other related parties and Jiande Heyue Enterprise Management shall maintain a net asset value not less than the net asset value as at June 30, 2017. As at the date of this announcement, Hospital Corporation of China has obtained a written approval on the sale purchase agreement from its shareholder, which holds 70.19% stake in Hospital Corporation of China. If the conditions are not fulfilled (or waived) on or before the long stop date, the sale purchase agreement shall cease to be of any effect. Completion shall take place upon the day that the business license in respect of the acquisition is issued by the relevant local branch of the State Administration of Industry & Commerce of the PRC. As of December 28, 2017, exclusive period is revised to April 28, 2018. Computershare Hong Kong Investor Services Limited appointed as registrar to Hospital Corporation of China Limited. PricewaterhouseCoopers Hong Kong acted as accountant and D&P China (HK) Limited appointed as independent valuer of Hospital Corporation of China Limited. Hospital Corporation of China Limited (SEHK:3869) completed the acquisition of Jiande Heyue Enterprise Management Co., Ltd. from Hong Jiangxin and Hong Yang on January 11, 2018.