Crownicorp (00727) has announced that on July 31, 2024 (after the trading session), the buyer (a wholly-owned subsidiary of the company) and the seller have entered into an equity transfer agreement. The buyer conditionally agrees to purchase 100% of the equity of the target company, while the seller conditionally agrees to sell the equity. The price is RMB 0.8 billion (including various taxes and fees imposed by the government).

The target company is primarily engaged in integrated health and wellness business in China. It holds the land use rights for the following investment properties: (1) a plot of land located in Zhuhai Economic Technological Development Zone, with land numbers 1–29, 32, 33, 34, and 35. The total construction area is approximately 0.0784 million square meters, with a term until November 30, 2055. There are 11 buildings with a total construction area of 0.073 million square meters. (2) a plot of land located in Zhuhai Hongwan Industrial Zone, with land numbers 1–30 and 1–31. The total construction area is approximately 0.0121 million square meters, with a term until January 15, 2057.

The group aims to develop comprehensive and integrated health and wellness planning and management services through the development of wellness apartments with five-star hotel serviced apartment decoration standards and service levels, combined with sufficient and necessary wellness facilities and spatial layouts, and with professional butler and wellness services. The group is committed to creating high-end wellness apartments with advanced facilities, impeccable services, elegant environments, and a balance between living and wellness. The pricing of wellness apartments will depend on the apartment size, floor level, and orientation.

On August 18, 2024, the buyer and the seller entered into a supplemental agreement to the equity transfer agreement dated July 31, 2024. The buyer and the seller agreed to revise the terms and conditions of the agreement, resulting in the buyer conditionally agreeing to purchase 75% of the equity of the target company (instead of 100%), at a price of RMB 0.6 billion (including various taxes and fees imposed by the government).

After careful consideration, the buyer and the seller have decided not to proceed with the acquisition. On September 4, 2024 (after the trading session), the buyer and the seller entered into a termination agreement (the 'Termination Agreement'). The buyer and the seller agreed to terminate the equity transfer agreement, and as of the termination agreement date, it will no longer be binding on the parties. The buyer and the seller mutually release and discharge each other from any and all obligations, duties, responsibilities, claims, and debts arising from or related to the equity transfer agreement, regardless of the cause or nature thereof, to any other parties (if applicable).

As of the date of this announcement, the buyer has not made any payment to the seller for the purchase price.

The directors believe that terminating the equity transfer agreement will not have any significant impact on the group's financial position and business operations.

As the acquisition has been terminated, the company has applied to the Stock Exchange to resume trading from 9:00 am on September 5, 2024.