The Board hereby announces that on 18 September 2008, the Bank entered into the Investor Agreement with CFSH and LCFR whereby the Bank has agreed to acquire 20% Shares of the enlarged share capital of LCFR at a total consideration of EUR236,270,842.68 (approximately HK$2,614,738,535). The Transaction will be effected by (i) subscription of 663,268 new Shares issued and allotted by LCFR (representing 10.70% of LCFR's enlarged share capital) and (ii) purchase of 577,064 Shares held by CFSH (or another entity in CFSH's group) (representing 9.30% of LCFR’s enlarged share capital). Furthermore, as part of the Investor Agreement, the Bank and LCFR have agreed on the Business Cooperation Framework to govern the future business cooperation between them. In addition, on the same date as the execution of the Investor Agreement, the Bank and CFSH entered into the Shareholders Agreement, which shall become effective upon Completion of the Transaction and shall govern the ongoing shareholder relationship between the Bank and CFSH.
By Order of the Board
YEUNG Cheung Ying
Company Secretary
Hong Kong, 18 September 2008
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