Evergrande Real Estate Group Limited (HKG:3333) announced that it has agreed to acquire 40% of the issued share capital of Success Will for an aggregate consideration of US$161.642 million (HK$1.26 billion). After completion of the acquisition, Success Will will become a wholly owned subsidiary of the Company.

Success Will was established in 2007 to facilitate the Vendor to invest into the Evergrande Royal Scenic Peninsula project.

The project occupies a total site area of 544,000 square meters and a total gross floor area of 1,080,000 square meters in a scenic area with a 2.8 kilometre coastline in the upstream area of the Pearl River.

Pursuant to the shareholders' agreement entered into between the Company and the vendor for Success Will in September 2007, the parties will wind-up Success Will upon the sale of the last commodity housing unit of the project or the expiry of four years from the date of the shareholders' agreement. However, in view of the fact that the project is still being developed, the parties agreed to delay the winding-up of Success Will and enter into negotiations for the acquisition. The acquisition will enable the Company to consolidate its control of Success Will and to continue with the development of the Evergrande Royal Scenic Peninsula project of the Company.

Source:chinesestock.org