Cedar Strategic

Cedar Strategic: Potential positive sentiment, after the group announced a proposed RTO of leading Guizhou Property Player Hua CHeng Group for $936.2m. Cedar Strategic will emerge as a regional real estate group, with significant property interests in Guizhou Province, with a realizable net asset value of approximately RMB6.7b. Hua Cheng Group has completed over twelve property developments to date, and is one of the major property developers based in the Guizhou province. For FY12, Hua Cheng recorded unaudited revenue of ~Rmb103.5m and a consolidated net profit of ~Rmb43.4m. Properties held for investment under Hua Cheng generated rental income of ~Rmb85.0m in FY12. Hua Cheng has an estimated gross floor area (GFA) of over 4.9m sqm for development in its land bank, which consists of properties under development and/or held for future development. The Consideration will be satisfied by the issuance of 46.8b new shares to the Vendor at an issue price of $0.02, on a pre-share consolidation basis. The final Consideration shall be fixed at 70% of the realisable net asset value (RNAV) of Hua Cheng as at June 30, 2013, as determined by Jones Lang LaSalle and Advisory Limited, an independent market valuer appointed at Cedar Strategic’s discretion. The Issue Price and number of Consideration Shares will be adjusted accordingly