South China Holdings Limited (HKG:0265) (South China) announced that it has become aware that the acquisition of the civilian satellite applications business may take longer time than expected, and noted the fluctuations in market conditions. South China has therefore agreed with the vendor to terminate the acquisition of Zhong Jie Holdings Limited.

The ancillary transactions, including the offer and the proposed change of company name, will not proceed.

Last October, South China said it entered into a sale and purchase agreement for the acquisition of the entire issued share capital of target company Zhong Jie at HK$700 million. South China's board also proposed a group reorganization and change of company name in English from "South China Holdings Limited" to "China Beidou Holdings Limited".