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Fang signs non-binding memorandum to purchase Wanli

By Gordana Davila 0 Comments NEWS, Industry News

Fang Holdings Limited, one of the leading real estate Internet portals in China, recently announced that it has signed a preliminary non-binding memorandum to acquire a 10% equity interest in Chongqing Wanli New Energy Co., Ltd., a company listed on the Shanghai Stock Exchange (stock code: 600847), from its controlling shareholder for a cash consideration of RMB500 million, of which RMB200 million will compensate the seller in connection with the Business Disposal (defined below).

In connection with the proposed acquisition, the seller agrees (1) to enter into an irrevocable acting-in-concert agreement with a term of three years to adhere to Fang's action in Wanli's future meetings of shareholders and board of directors and (2) to purchase from Wanli its battery business for a price of no less than RMB680 million within three years after the consummation of the proposed acquisition (the "Business Disposal"). Following the consummation of the proposed acquisition, Fang will become the largest shareholder of Wanli.

Subject to the completion of due diligence satisfactory to Fang and the obtaining of the relevant internal and regulatory approvals, the parties expect to enter into definitive transaction documents related to the proposed acquisition and consummate the transactions contemplated thereunder in due course.

Fang's user-friendly websites support active online communities and networks of users seeking information on, and other value-added services for, the real estate and home furnishing and improvement sectors in China. Fang currently maintains about 100 offices to focus on local market needs and its website and database contains real estate related content covering more than 651 cities in China.

Wanli was founded in 1992 and is a manufacturer of storage batteries. Wanli's shares have been listed on the Shanghai Stock Exchange since 1994.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as "will," "expects," "is expected to," "anticipates," "aim," "future," "intends," "plans," "believes," "are likely to," "estimates," "may," "should" and similar expressions, and include, without limitation, the expectation to enter into definitive transaction documents related to the proposed acquisition. Such statements are based upon management's current expectations, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Fang's control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, without limitation, the parties' ability to complete the due diligence to the satisfaction of Fang, obtain the relevant internal and regulatory approvals, enter into definitive transaction documents related to the proposed acquisition and consummate the transactions contemplated thereunder. Further information regarding these and other risks, uncertainties or factors is included in Fang's filings with the U.S. Securities and Exchange Commission. Fang does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

 

SOURCE Fang Holdings Limited
Edited by Gordana Davila

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