China ZhengTong Auto Services Holdings Limited (“ZhengTong Auto” or the “Company” and, together with its subsidiaries, the “Group”, Stock code: 1728), a major premium branded 4S dealership group in China, announced that at the extraordinary general meeting of the Company held today, all the proposed resolutions as set out in the notice of the EGM were duly passed by the shareholders of the Company by way of poll. Hence, the transaction pursuant to the conditional sale and purchase agreement established for the Group’s acquisition of the entire issued share capital of Top Globe Limited (“Target Group”) at a consideration of RMB5.5 billion (equivalent to approximately HK$6.7 billion) was approved by its shareholders.

The Target Group is a leading automobile dealership group in the PRC. According to ACMR, the Target Group ranked 9th in terms of turnover in 2010 in the PRC automobile dealership industry, including premium brands such as Land Rover, Jaguar and Volvo..

The acquisition results in a horizontal expansion of the Group. The Target Group has 22 4S dealership stores in 10 cities of affluent coastal regions or top tier cities such as Shenzhen, Guangzhou, Fuzhou and Beijing, as well as rapidly developing inland regions such as Changsha. The Group’s dealership network coverage in affluent regions in the eastern coastal areas will be enhanced after the acquisition. Furthermore, the Acquisition also helps the Group enter into new markets such as Tianjin, Fujian and Hainan, and thus expand its geographic coverage in both affluent cities and rapidly developing regions. Upon the completion of the acquisition, the Group will have 54 operating points, covering both large, established automobile markets in more than 20 cities in China’s affluent regions and rapid developing regions.