Sunac China (01918.HK) announced on Monday (August 24) that its subsidiary, Sunac Real Estate Management Co., Ltd., acting as the buyer, has agreed to acquire a 100% stake in Rongshun Investment Co., Ltd. from Rongzhe Gongchuang Holdings, the seller. The seller is owned 65% by Wang Peng, 25% indirectly by major shareholder Sun Hongbin, and 10% by other independent individuals.

The acquisition consideration is approximately HK$142.36 million (RMB 123.15 million), to be settled by issuing approximately 260.26 million consideration shares, representing 1.29% of the enlarged share capital. The issue price per share is HK$0.547, a slight premium of 0.37% over the closing price of HK$0.545 on the previous trading day (August 24).

Rongshun Investment Co., Ltd., the target company, holds a 100% stake in Erjin Construction Management Group Co., Ltd. (Erjin Management). Erjin Management focuses on the development of light-asset businesses in real estate construction management and asset management, with a current contracted project area of approximately 8.34 million square meters.

Sunac China believes that Erjin Management's business model aligns closely with the group's strategic transformation and upgrading direction in its real estate development operations. The acquisition will strengthen the business support for the strategic transformation and upgrading of the group's real estate segment, facilitating the implementation of its overall strategic transformation.

This article is for informational purposes only and does not constitute investment advice. Investors should bear the risks associated with acting on this information.