Moscan Developments Limited, a British Virgin Islands-based wholly-owned subsidiary of Hong Kong-based diversified company NWS Holdings Limited, has entered into a sale and purchase agreement with The Childrens Investment Master Fund (TCI) to acquire approximately 26.32% of the total issued shares in Chinese Future Corporation (CFC) for a purchase price of $280 million.
CFC is a Cayman Islands-based toll road and infrastructure projects holding company, which owns 95% indirect equity interest in Hangzhou Ring Road (HZRR).
Upon completion, NWS Holdings effective interest in HZRR, when aggregated with the acquisition of approximately 21.55% and approximately 12.11% as announced by it on June 14, 2011 and July 27, 2011 respectively, will increase from approximately 33.66% to approximately 58.66%. Accordingly, CFC will become a subsidiary of NWS Holdings.
After completion of the sale and purchase agreement with TCI, NWS Holdings, through Moscan, is entitled to proceed with the acquisition of a further 65% interest in Widefaith Group Limited, which represents 31.5% effective interest in HZRR, within a period of three months according to a call and put option arrangement with Kaiming Holdings Limited, an existing shareholder of Widefaith. In the event that NWS Holdings exercises the option, it will ultimately hold approximately 90.16% effective interest in HZRR.