Lo Ki Yan Karen (offeror) made an offer to acquire remaining 55.38% stake in Yugang International Limited (SEHK:613) from Chongqing Industrial Ltd, Zhang Qing Xin, Lam Hiu Lo, Liang Kang and other shareholders for approximately HKD 900 million on January 23, 2019. Pursuant to the terms of the conditional mandatory cash offer, Lo Ki Yan Karen will acquire 5.2 billion shares of Yugang International Lim at HKD 0.175 per share. Chongqing Industrial Ltd has undertaken to the offeror that it will not accept the offer. The offeror intends to finance the consideration payable under the offer through internal resources and a loan facility. The offeror does not intend to exercise any power of compulsory acquisition of any offer shares outstanding and not acquired under the offer after the close of the offer. Following the close of the offer, the offeror intends to continue the existing principal businesses of Yugang International. The offeror has no intention to discontinue the employment of any employees of Yugang International. The offeror intends to nominate new directors to the board of Yugang International. The offeror intends to maintain the listing of the shares of Yugang International on the stock exchange after the close of the offer and each of the offeror and Yugang will undertake to the stock exchange to take appropriate steps as soon as possible following the close of the offer to ensure that a sufficient public float exists for the shares. The offer is conditional upon the offeror having received valid acceptances of the offer which, together with the shares already acquired or agreed to be acquired by the offeror and the parties acting in concert with it before or during the offer period, will result in the offeror and parties acting in concert with it holding more than 50% of the voting rights of Yugang International Limited. The Independent Board Committee comprising the non-executive Directors, namely Lee Ka Sze, Carmelo, Luk Yu King, James, Leung Yu Ming, Steven, and Ng Kwok Fu, has been established to recommend the shareholders of Yugang International Limited on the offer. As of April 15, 2019, the offerors received valid acceptance of 9.84% stake in Yugang International Limited, which when taken with the stake already held by the offeror, reaches to 54.5% stake in Yugang International Limited, hence the offer has become unconditional, as the condition for achieving more than 50% stake is satisfied. The first closing date of the offer is April 18, 2019 and the latest date of the offer will be May 27, 2019. As the offer has become unconditional on April 15, 2019, the offer will remain open until April 29, 2019. An independent financial adviser to the Independent Board Committee will be appointed Get Nice Capital Limited and Veda Capital Limited acted as joint financial advisers to Lo Ki Yan Karen. As of January 28, 2019, Shinco Capital Limited acted has been appointed as independent financial adviser for Yugang International Limited to advise the Independent Board Committee as to whether the offer is, or is not, fair and reasonable and as to acceptance of the offer. Tricor Tengis Limited acted as registrar for Yugang International.