Happy Splendid Limited entered into the sale and purchase agreement to acquire Tungtex Trading Company Limited from Tungtex (Holdings) Company Limited (SEHK:518) for HKD 59 million on September 4, 2017. The consideration will paid by cheque at completion. In a related transaction, Happy Splendid Limited entered into the sale and purchase agreement to acquire Sing Yang (Overseas) Limited from Tungtex (Holdings) Company Limited (SEHK:518) for approximately HKD 98 million. For the financial year ended March 31, 2017, Tungtex Trading Company Limited had reported total asset value of HKD 252.7 million, net asset value of HKD 63.1 million, revenue of HKD 380.9 million and net profit after taxation of HKD 5.01 million. The transaction is subject to the approval of the shareholders of Tungtex (Holdings) Company Limited, Tungtex Trading Company Limited having ceased to carry out the trading business and having transferred all title, interests, benefits, rights, and obligations in the trading business to Tungtex (Holdings) Company Limited, Tungtex Trading Company Limited having settled all outstanding amount due to other parties, and other customary conditions. Tungtex (Holdings) Company Limited established an independent Board committee comprising all the independent non-executive Directors to recommend and advise the independent shareholders in respect of the transaction. If the conditions are not fulfilled/waived by March 31, 2018 ('Long Stop Date'), the transaction shall terminate. Completion of transaction is expected to take place on fifth business day after the fulfillment/waiver of last condition precedent. Tungtex (Holdings) Company Limited expected to record a gain over the disposal and to use the sale proceeds for general working capital. AP Appraisal Limited acted as an independent valuer in the transaction and VBG Capital Limited acted as a financial advisor to Tungtex (Holdings) Company Limited. Alliance Capital Partners Limited acted as independent financial advisor to Independent Board Committee and the Independent Shareholders of Tungtex (Holdings) Company Limited. Happy Splendid Limited cancelled the acquisition of Tungtex Trading Company Limited from Tungtex (Holdings) Company Limited (SEHK:518) on January 12, 2018. The Board of Directors of Tungtex (Holdings) Company Limited considers that the termination of the transaction will not have any material adverse effect on the operations of the Tungtex (Holdings) Company Limited and its subsidiaries.