上海新茂房地产开发有限公司

-1-HongKongExchangesandClearingLimitedandTheStockExchangeofHongKongLimitedtakenoresponsibilityforthecontentsofthisannouncement,makenorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisannouncement.CHINESEESTATESHOLDINGSLIMITED(IncorporatedinBermudawithlimitedliability)(StockCode:127)DISCLOSEABLETRANSACTIONACQUISITIONOFTHEREMAININGNON-VOTINGSHARESINGETWISDOMLIMITEDOn29June2010,thePurchaser,beinganindirectwholly-ownedsubsidiaryoftheCompany,exercisedtheCallOptiontopurchasetheSaleNon-votingShares,representing20%oftheissuedsharecapitalofGetWisdom,fromtheVendoratthepriceofHK$7.80perSaleNon-votingShare.CompletionoftheAcquisitiontookplaceon29June2010whereupontheconsiderationfortheSaleNon-votingSharesinthetotalsumofHK$15.60waspaidbythePurchasertotheVendorandthePurchaseradvancedthePurchaser’spro-rataportionoftheshareholders’loantoGetWisdominthesumofapproximatelyHK$195.2millionforthepurposeoffundingGetWisdom’srepaymentofsuchpartoftheshareholders’loanowedbyGetWisdomtotheVendorpursuanttothetermsoftheSPAgreement.InadditiontothecorporateguaranteepreviouslygivenbytheCompanyofuptoapproximatelyHK$268.5milliontoguaranteetheobligationsofSmartDynastyundertheLoanAgreement,theCompanyisrequiredtofurtherguaranteeitsadditional20%pro-rataobligationsofSmartDynastyundertheLoanAgreementofuptoanadditionalsumofapproximatelyHK$179.0millionaftercompletionoftheAcquisition.CONVERSIONOFNON-VOTINGSHARESINGETWISDOMLIMITEDINTOORDINARYSHARESImmediatelyaftercompletionoftheAcquisition,GetWisdomisheldasto50%bytheVendor(comprising5OrdinaryShares)and50%bythePurchaser(comprising5Non-votingShares)andisanassociatedcompanyoftheCompany.On29June2010,thePurchaserfurtherexercisedtheConversionRightgrantedtoholdersofNon-votingSharesundertheShareholders’Agreement,asaresultofwhich,subjecttothepassingofanordinaryresolutionbytheshareholdersofCSI(otherthanthose,ifany,whoarerequiredtoabstainfromvotingundertheListingRules),allofthe5Non-votingSharesheldbythePurchaserwillberedeemedbyGetWisdomandbeconvertedinto5OrdinaryShares.UponcompletionoftheConversion,whichwillonlytakeeffectsubjecttothepassingofanordinaryresolutionbytherelevantshareholdersofCSI,theentireissuedsharecapitalof-2-GetWisdomwillcompriseOrdinarySharesonlyandGetWisdomwillbeheldasto50%bytheVendor(comprising5OrdinaryShares)and50%bythePurchaser(comprising5OrdinaryShares)andwillremainanassociatedcompanyoftheCompany.PUTOPTIONPursuanttothetermsoftheSPAgreement,upontheexerciseoftheCallOptionbythePurchasertoacquiretheSaleNon-votingShareson29June2010,theVendorshallbeentitledtoexercisethePutOptionduringtheperiodfromthedateofcompletionoftheAcquisitiontotheexpiryof180daysthereafter(bothdatesinclusive)torequirethePurchasertopurchasefromtheVendorthePutOptionSharesatthepriceofHK$7.80perPutOptionShare.UponcompletionofthesaleandpurchaseofthePutOptionSharespursuanttotheexerciseofthePutOption,inadditiontothepricepayableforthePutOptionShares,thePurchasershalladvancethePurchaser’spro-rataportionoftheshareholders’loantoGetWisdomthenoutstandinginthesumofapproximatelyHK$487.6millionforthepurposeoffundingGetWisdom’srepaymentofsuchpartoftheshareholders’loanowedbyGetWisdomtotheVendorpursuanttothetermsoftheSPAgreement.IntheeventthatthePutOptionisexercisedbytheVendorandthesaleandpurchaseofthePutOptionSharesiscompleted,GetWisdomshallbecomeanindirectwholly-ownedsubsidiaryoftheCompanyandtheresultsoftheGetWisdomGroupwillbeconsolidatedinthefinancialstatementsoftheCompanythereafter.UndertheShareholders’Agreement,theCompanywillthenalsoberequiredtoguaranteetheobligationsofSmartDynastyundertheexistingbankloanofuptoatotalsumofHK$895million.ItisalsoatermoftheLoanAgreementthatforsolongasanymoneysareowingundertheLoanAgreement,SmartDynastyshallnotapproveorallowsuchchangeinshareholdingofGetWisdomwithoutthepriorwrittenconsentofthelendingbank.GENERALGetWisdomisaninvestmentholdingcompanyincorporatedintheBritishVirginIslands,thesoleassetofwhichistheentireissuedsharecapitalofSmartDynasty,beinganinvestmentholdingcompanyincorporatedinHongKong.ThesoleassetofSmartDynastyistheentireregisteredcapitalofShanghaiXinMao.ShanghaiXinMaoisacompanyincorporatedinthePRCandistheregisteredowneroftheProperty,whichisitssoleassetofsignificance.ThePropertyisacommercialbuildinglocatedinShanghai,withagrossfloorareaof43,335.55squaremetres.SmartDynastycompletedtheindirectacquisitionofthepropertyinterestinthePropertyon1April2010.TheAcquisition,whenaggregatedwiththePreviousAcquisition,thepossibleexerciseofthePutOptionbytheVendorandtheexistingandpossibleadditionalcorporateguaranteegivenortobegivenbytheCompanyinrespectoftheobligationsofSmartDynastyundertheLoanAgreement,constitutesadiscloseabletransactionfortheCompanyunderChapter14oftheListingRulesastheapplicablepercentageratiosinrespectthereofaregreaterthan5%butlessthan25%,andissubjecttotheannouncementrequirementbutexemptfromshareholders’approvalrequirementundertheListingRules.-3-BACKGROUNDGetWisdomisaninvestmentholdingcom