China Shandong Hi-Speed Financial Group Limited (SEHK:412) entered into a share purchase agreement to acquire 50% stake in Kun Peng (HK) Investment Limited from Honesta Investment Limited for approximately CNY 100 million on December 29, 2017. Under the terms of transaction, China Shandong Hi-Speed Financial Group Limited will issue 363.1 million new shares to acquire 50% stake in Kun Peng (HK) Investment Limited on or before March 31, 2018. In a related transaction, China Shandong Hi-Speed Financial Group Limited agreed to subscribe for 25% stake in Kun Peng (HK) Investment Limited. Upon completion, China Shandong Hi-Speed Financial Group Limited will hold 75% of existing stake and 60% of the enlarged share capital of Kun Peng (HK) Investment Limited. Upon completion, Kun Peng (HK) Investment Limited will become a subsidiary of China Shandong Hi-Speed Financial Group Limited. As on September 30, 2017, Kun Peng (HK) Investment Limited had net asset of CNY 14.8 million. The allotment and issue of the consideration shares is subject to the grant of approval of the Stock Exchange for the listing of, and permission to deal in, the consideration shares. The transaction is subject to all required regulatory approval having been obtained, China Shandong Hi-Speed Financial Group Limited having completed their due diligence review on Kun Peng (HK) Investment Limited, Kun Peng (HK) Investment Limited having completed its reorganization; and other customary conditions. The transaction has been approved by the Board of China Shandong Hi-Speed Financial Group Limited. If the conditions precedent are not fulfilled on or before January 31, 2018 or such other dates as may be agreed between the parties, the agreement shall be terminated. The transaction is expected to be completed on the 1st business day after the fulfillment of all the conditions precedent.