Zhuguang Holdings Group Company Limited (HKG:1176) announced that it has agreed to acquire the entire issued share capital and the shareholder's loan of Profaith International, from Chu Hing-tsung, an executive Director, and the Deputy Chairman and Chief Executive Officer of the Company, for an aggregate consideration of RMB354.5 million.

The consideration will be satisfied by the issue of 437 million shares at a price of HK$1 per share. The issue price represents a premium of 14.94% to HK$0.87, being the closing price on the last trading day. The issue shares represent 15.05% of the enlarged issued share capital of the Company.

Profaith International holds 100% interests in the project relating to the development of a parcel of land located in Conghua City, Guangdong City, Guangdong Province, the PRC.

The project is divided into two phases. The first phase comprises 57 villas and 5 low-rise apartment buildings with a total building area of 43,004 square meter; the second phase comprises 28 villas, 3 low-rise apartment buildings and 1 hotel building with a total building area of 81,265 square meter.