庆英利房地产开发有限公司)

SHOWYINTERNATIONALLIMITED(IncorporatedintheRepublicofSingapore)(CompanyRegistrationNumber:199106356W)ANNOUNCEMENTPROPOSEDACQUISITIONOF51%OFCHONGQINGYINGLIREALESTATEDEVELOPMENTCO.,LTD1.INTRODUCTION1.1AgreementtoAcquire51%ofChongqingYingliRealEstateDevelopmentCo.,Ltd.TheboardofdirectorsofShowyInternationalLimited(the“Company”),ispleasedtoannouncethatCompanyhadon8August2007enteredintoaninvestmentagreement(the“InvestmentAgreement”)withtheVendors(ashereinafterdefined)fortheacquisitionof51%oftheenlargedregisteredcapitalofChongqingYingliRealEstateDevelopmentCo.,Ltd.(重庆英利房地产开发有限公司)(“ChongqingYingli”)(the“Acquisition”)bymakingacapitalcontributionofapproximatelyRMB800.0million(the“CapitalContribution”)toChongqingYingliandallottingandissuing114,000,000newordinarysharesinthecapitaloftheCompany(the“ConsiderationShares”)atanissuepriceofS$0.40totheVendorsorsuchotherpersonsastheymaydirect.Asatthedateofthisannouncement,theregisteredcapitalofChongqingYingliisheldbyChongqingTianchengIndustrialCompany(重庆天成实业公司)(asto53.33%),ChongqingTianchengPassengerMotorCo.,Ltd(重庆天成客运汽车有限责任公司)(asto7.33%),ChongqingJingliPropertyDevelopmentCo.,Ltd.(重庆靖立物业发展有限责任公司)(asto6.67%)andHongKongFortuneCourtHoldingsLimited(香港富广集团有限公司)(“HongKongFortune”)(asto32.67%)respectively(collectively,the“Vendors”).Further,toraiseproceedsfortheAcquisition,theCompanyisproposingtoallotandissue382,500,000newordinaryshares(the“NewShares”)atanissuepriceofS$0.40eachbywayofafundraisingexercise(the“FundRaisingExercise”).AsatthedatepriortothesigningoftheInvestmentAgreement(the“LatestPracticableDate”),theCompanyhasnotdeterminedthestructureandotherdetailsoftheFundRaisingExerciseandwilldosoinduecoursepriortothecommencementoftheFundRaisingExerciseinconsultationwithitsfinancialadvisers.Uponthedeterminationofsuchdetails,thenecessaryannouncementswillbemade.FurtherdetailsontheInvestmentAgreementandtheFundRaisingExercisewillbesetoutinacirculartobeissuedtotheshareholdersoftheCompany(the“Shareholders”)induecourse(the“Circular”),togetherwithanoticeofextraordinarygeneralmeetingwhichtheCompanywillconvenedforthepurposesofobtainingtheapprovaloftheShareholdersfortheAcquisitionandtheNewSharestobeissuedpursuanttotheFundRaisingExercise.1.2InformationontheChongqingYingliChongqingYingliwasincorporatedin1993asaChinese-HongKongjointventurecompany,principallyengagedinthedevelopmentofhigh-graderealestateprojectsinChongqing,thePRC.ItwasamainsubsidiaryofChongqingTianchengIndustryGroupthen.Sinceitsestablishmentin1993,ChongqingYinglihassuccessfullydevelopedmanylargeandcomprehensiverealestateprojectssuchasNewYorkNewYork(纽约纽约),ZouRongPlaza(邹容广场),andFutureInternational(未来国际),withafocusonthedevelopmentofcommercialandofficebuildingsandlandmarkbuildings.SituatedintheheartofthecentralbusinessdistrictofChongqing,theserealestateprojectsofChongqingYinglihousethemainfinancialinstitutionsofChongqing.AsattheLatestPracticableDate,thetotalgrossfloorarea(“GFA”)ofcompletedpropertiesheldforinvestmentbyChongqingYingliisapproximately442,367squaremetres(“sqm”),comprisingcommercialareaof93,043sqm,officeareaof189,653sqm,residentialareaof116,975sqmandcarparkspaceof42,696sqm.ThetotalplannedGFAofpropertyheldfordevelopmentisapproximately77,163sqm,comprisingcommercialareaof13,526sqm,officespaceof55,998sqmandcarparkspaceof7,638sqm.Inaddition,thetotalestimatedGFAofChongqingYingli’slandbankasatthedateofthisAnnouncementis347,262sqm.2.PRINCIPALTERMSOFTHEPROPOSEDACQUISITION2.1AgreedTermsUnderthetermsoftheInvestmentAgreement:2.1.1theVendorshasdirectedthat22,000,000ConsiderationSharesbeissuedtoSWIFTChinaLtd(inconsiderationofconsultancyservicesprovidedtoChongqingYingliandtheVendors)andtheremaining92,000,000ConsiderationSharesbeissuedtoMrFangMingorsuchpersonsashemaydirect.2.1.2uponCompletion,theCompanyandHongKongFortuneshallrespectivelyhold51%and46.24%oftheenlargedregisteredcapitalofChongqingYingli;and2.1.3asaconditionforthecompletionoftheAcquisitionandconcurrentlywiththeexecutionoftheInvestmentAgreement,theCompanyhasalsoenteredintotheOptionAgreementdated8August2007(the“OptionAgreement”)withMrFangMing,theshareholderofHongKongFortune,andChongqingTianchengIndustrialCompany,ChongqingTianchengPassengerMotorCo.,LtdandChongqingJingliPropertyDevelopmentCo.,Ltd.(collectivelyreferredtoasthe“PRCShareholders”)grantingtheCompanyacalloption(the“CallOption”)torequireMrFangMingandthePRCShareholderstosellorprocurethesaleofallbutnotpartonlyoftheOptionShares(definedasandwhichwillincludeentireissuedandpaid-upsharecapitalinHongKongFortuneand2.76%oftheregisteredcapitalheldbythePRCShareholdersinChongqingYingli)totheCompany,uponthetermsandconditionsoftheOptionAgreement.2.2AggregateConsiderationTheaggregateconsiderationtobepaidfortheAcquisitionisapproximatelyS$205.6million(the“AggregateConsideration”)(includingtheConsiderationShares)andwasarrivedatonawilling-buyerandwilling-sellerbasis,aftertakingintoaccount,interalia,(i)thevaluationofthepropertiesofChongqingYingliand(ii)thevaluationoftheparcelsoflandfortheInternationalFinancialCentreandtheLuZuTempleProject(“LandCon