Anchorstone Holdings Limited potential acquisition will increase yearly revenue

Anchorstone Holdings Limited (01592.HK) will sign a formal agreement to purchase high-quality assets after completion of due diligence and approval by the board of directors.

Potential acquisition of target company's transaction is based on an independent professional valuation of HK$76.5 million (US$9.88 million), transaction price may possiblyincrease. The group will issue convertible bonds to the seller based on the authorization to issue new shares as a payment method. The target company is expected to increase its ownership of the Croatian marble mine and the Turkish marble mine. The target company is negotiating strategic cooperation with real estate and property development group in the PRC (PRC Enterprise Group). The target company will become the exclusive supplier of building materials for the PRC Enterprise Group. The strategic cooperation is in the drafting stage. The expected cooperation period is three years and the total contract value is about RMB$100 million (US$14.65 million).

Potential transaction is that Anchorstone intends to become a joint venture partner with MEYA MADENCILIK VE MERMER PAZARLAMA SANAYI VE TICARET A.S., and both enter into cooperation agreement: The joint venture will develop and mine in Turkey the company's high-quality marble mines (Turkey Mine) and the global stone supply market; the cooperation agreement is subject to that Anchorstone and the target company will each hold 50% of the joint venture. The current actual owner of the joint venture partner has many years of mining operational experience in Europe. Turkey Mine ownership is valued as US$14million. After the ore is fully exploited, the annual output is expected to reach 50,000 to 120,000 tons. The joint venture's annual revenue is approximately US$6 million to US$14.4 million.

Anchorstone Holdings Limited (01592.HK) is engaged in global stone sales and marble product supply, potential acquisition of high-quality assets which will benefit the future development of the business and yearly revenue.