首方投资管理(深圳)有限公司

TheStockExchangeofHongKongLimitedtakesnoresponsibilityforthecontentsofthisannouncement,makesnorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimsanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisannouncement.首長四方(集團)有限公司*SHOUGANGCONCORDGRAND(GROUP)LIMITED(IncorporatedinBermudawithlimitedliability)(StockCode:730)DISCLOSEABLEANDCONNECTEDTRANSACTIONOn20August2008,CapitalSteel,anindirectwholly-ownedsubsidiaryoftheCompany,andShenzhenJiayindaenteredintotheShareTransferAgreementpursuanttowhichShenzhenJiayindaagreedtotransferits20%equityinterestintheregisteredcapitalofSouthChinaLeasingtoCapitalSteelforaconsiderationofRMB31,755,150(equivalenttoapproximatelyHK$36,106,000).ShenzhenJiayindaisasubstantialshareholderofSouthChinaLeasing,anon-whollyownedsubsidiaryoftheCompany.Accordingly,theAcquisitionconstitutesaconnectedtransactionfortheCompanywhichissubjecttothereporting,announcementandindependentshareholders’approvalrequirementsunderChapter14AoftheListingRules.TheIndependentBoardCommitteecomprisingtheindependentnon-executiveDirectorshasbeenappointedtoconsiderthetermsoftheShareTransferAgreement.GuangdongSecuritiesLimitedhasbeenappointedastheindependentfinancialadvisertoadvisetheIndependentBoardCommitteeandtheIndependentShareholdersonthefairnessandreasonablenessofthetermsoftheShareTransferAgreement.AsShenzhenJiayindaisnotinterestedinanyShares,andnoShareholdersisinterestedinthetransactionandisrequiredtoabstainfromvotingfortheresolutiontoapprovetheAcquisition,ShougangHolding(throughitswholly-ownedsubsidiaries)andMaxSame,whichareinterestedin489,450,710Sharesand91,491,193Sharesrespectively,representingrespectively42.51%and7.94%oftheissuedsharecapitaloftheCompanyandanaggregateofapproximately50.45%oftheissuedsharecapitaloftheCompany,haveapprovedtheAcquisitionbywrittenshareholders’approvalsinaccordancewithRule14A.43oftheListingRulesifboththeIndependentBoardCommitteeandtheindependentfinancialadviserconsiderthetermsoftheAcquisitionarefairandreasonablesofarastheShareholdersareconcerned,andareintheinterestsoftheCompanyandtheShareholdersasawhole.TheCompanyhasinformedtheStockExchangeofitsintentiontoapplyforawaiveroftherequirementtoholdageneralmeetinginaccordancewithRule14A.43oftheListingRulesonthebasisofthewrittenapprovalfromShougangHoldingandMaxSame.TheAcquisitionalsoconstitutesadiscloseabletransactionfortheCompanyunderChapter14oftheListingRules.Acircularcontaining,amongstotherthings,furtherdetailsrelatingtotheAcquisition,theletterfromtheIndependentBoardCommitteeandtheadvicefromtheindependentfinancialadviserwillbedespatchedtotheShareholdersassoonaspracticable.12THESHARETRANSFERAGREEMENTDate:20August2008Parties:(1)CapitalSteel;and(2)ShenzhenJiayindaShenzhenJiayindaisprincipallyengagedininvestmentholdings.ShenzhenJiayindaowns20%oftheregisteredcapitalofSouthChinaLeasing,anon-whollyownedsubsidiaryoftheCompany,andisthereforeaconnectedpersonoftheCompany.Interesttobeacquired:20%oftheregisteredcapitalofSouthChinaLeasing,whichtothebestknowledgeoftheCompanywaspurchasedbyShenzhenJiayindafromanindependentthirdpartyin2005forRMB1,520,799.04.Inaddition,ShenzhenJiayindacontributedfurthercapitalofRMB4,662,643inJuly2005andRMB24,600,000inJuly2007toSouthChinaLeasing.ConsiderationTheconsiderationfortheAcquisitionisRMB31,755,150(equivalenttoapproximatelyHK$36,106,000),andwillbepayableincashinaccordancewiththefollowingschedule:(a)aninitialdepositofRMB23,000,000(equivalenttoapproximatelyHK$26,151,000)willbepayablewithin7daysfromthesigningoftheShareTransferAgreement;(b)thebalanceofRMB8,755,150(equivalenttoapproximatelyHK$9,955,000)willbepayablewithin7daysfromthesatisfactionoftheconditionsprecedentsetoutbelow.Theconsiderationwasdeterminedafterarm’slengthnegotiationbetweenthepartiesonnormalcommercialterms,andrepresentsapremiumofapproximately16%overthenetassetsattributabletotheinteresttobeacquiredinSouthChinaLeasingasat31December2007.TheconsiderationfortheAcquisitionwillbefinancedbytheGroup’sinternalresources.ConditionsCompletionoftheAcquisitionisconditionaluponfulfilmentofthefollowingconditions:(1)theapprovaloftheAcquisitionbytheIndependentShareholders,ortheCompanyhavingreceivedawrittenapprovalinrespectoftheAcquisitionfromShareholdersholdingmorethan50%oftheissuedsharecapitaloftheCompanyandtheStockExchangehavingacceptedthewrittenapprovalissuedbysuchShareholder(s)inlieuofaresolutiontobepassedataspecialgeneralmeetingoftheCompanytoapprovetheAcquisition;and(2)theapprovalbytheauthorityinthePRCoftheAcquisitionandSouthChinaLeasinghavingreceiveditsnewbusinesslicense.Iftheaboveconditionscannotbefulfilledby30June2009orsuchotherdateasmaybeagreedbetweentheparties,theShareTransferAgreementwillterminateandShenzhenJiayindawillrefundthedepositreceivedplusinterestthereoncalculatedataninterestrateof6%perannumtoCapitalSteel.SouthChinaLeasingSouthChinaLeasingisasino-foreignequityjointventureestablishedinthePRCon20May1989withanoperationtermof40yearsexpiringin2029.Itisprincipallyengagedintheprovisionoffinanceleasing