SICHUAN EXPRESS (00107) has entered into a purchase agreement with Shudao Venture Capital, intending to acquire 85% of the equity of Jingyi Expressway Company held by Shudao Venture Capital.

SICHUAN EXPRESS (00107) released an announcement on August 14, 2024, stating that the company has entered into a purchase agreement with Shudao Venture Capital. The company conditionally agrees to purchase, and Shudao Venture Capital conditionally agrees to sell, the target assets (85% equity of Jingyi Expressway Company held by Shudao Venture Capital), with the company issuing and issuing price shares to Shudao Venture Capital and paying cash as consideration. Both parties have agreed that the final total consideration for the proposed acquisition shall not exceed RMB 2.2 billion. The final total consideration for the proposed acquisition will be determined based on the valuation of the target assets recorded in the asset valuation report filed with the competent state-owned asset supervision and management agency or its authorized unit, and will be clearly stated through the conclusion of a supplementary agreement following fair negotiations. The proposed acquisition will help the company expand its highway network, aligning with the company's strategic considerations to further strengthen its control of high-quality road network resources, enhance the transportation main business, support the sustainable and healthy development of the company, strengthen the company's market competitiveness, and better leverage the scale and synergy effects between industries. According to the listing rules, the Independent Directors Committee must be composed of all independent non-executive directors who do not have any direct or indirect interests in the proposed acquisition. The Independent Directors Committee (composed of Yu Haizong, Bu Danlu, Zhou Hua, and Jiang Tao) has been established to provide opinions to independent shareholders on the fairness and reasonableness of the proposed acquisition and whitewash exemption, as well as to vote in accordance with the listing rules and acquisition rules. In addition, the company has applied to the Stock Exchange for the resumption of trading in H shares on September 25, 2024, starting at 9:00 am.