China Golden Development To Acquire Century Ginwa For CNY180 Million

China Golden Development Holdings Ltd. has announced that the company's plans to acquire Xi'an Century Ginwa have gained approval from the Ministry of Commerce and the acquisition is expected to be completed in September 2008.

Early in October 5, 2007, China Golden Development announced the plan to acquire a 76.43% stake of Xi'an Century Ginwa Zhonglou Shopping Center for CNY180 million. One of the shareholders of Century Ginwa is Wu Yijian, chairman of China Golden Development.

According to the contract signed at that time, CNY100 million of the acquisition cost would be used to pay off a part of Century Ginwa's bank loan and the rest of the loan would be paid over the five years after the completion of the acquisition.

A contemporary report showed that the net asset of Century Ginwa was approximately CNY240 million. Wu held a 60% stake of Century Ginwa. Through his own company Best Mineral, Wu promised to ensure the profit of Century Ginwa in 2008 would be no less than CNY50 million. China Golden Development would issue five-year unsecured convertible bonds to Best Mineral and the relevant bonds would be collateral.