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Very Substantial Acquisition (VSA)  
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China Nonferrous Metals Company Limited (08306.HK)
China Renji Medical Group Limited (00648.HK)
Grand T G Gold Holdings Limited (08299.HK)
Jinchuan Group International Resources Co. Ltd. (02362.HK)
Polyard Petroleum International Group Limited (08011.HK)
Shougang Concord Grand (Group) Limited (00730.HK)

A very substantial acquisition ("VSA") of a listed company is required to be published in an announcement, circular, unaudited pro forma financial information of enlarged group, accountants' report and property valuation report in accordance with Chapter 14 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited ("HK Listing Rules"). Besides, the company required to notify Hong Kong Exchanges and Clearing Limited ("HKEx") and obtain shareholders' approval. In order to comply with the HK Listing Rules, it is important that listed companies have to classify transactions carefully.

Valuation of Properties Being Acquired
When the transaction constitutes as a VSA, both the acquirer's and the acquiree's property interests (including leasehold interests) are required to valuate and release in the public circular.

Property valuation report is prepared in accordance with the HK Listing Rules in Chapter 5, Practice Note 12 for Main Board or Chapter 8 for GEM Board, and the valuation must perform and comply with different valuation standards - the Hong Kong Institute of Surveyors Valuation Standards or the International Valuation Standards published by the International Valuation Standards Council, where applicable.

Our professional consultants are internationally recognised and provide comprehensive property valuation report supported by extensive experience and competent analysis.

 

What We Support
We offer more than just valuation. Our highly experienced members provide effective business solutions that bring direct benefit and new profit opportunities to clients. Our valuers and consultants have multiple valuation and professional designations which can fulfil clients' different needs. Our conclusion of value is based on facts and circumstances, as well as our experience and professional judgement, which will assist the company in making logical and confident decision.

For more information about our valuation and consulting services, please visit www.gca-valuation.com and www.gca-mining.com.

Case of Very Substantial Acquisition
A Hong Kong listed company intended to acquire controlling shares of a private mining company in the PRC. The target mining company was in possession of two mining rights certificates.

case study

The synergy effect of the transaction constitutes as a VSA. The listed company had engaged GCA Professional Services Group to prepare the Competent Evaluator Report on the mineral assets of the target group in accordance with the reporting standards of Chapter 18 of the HK Listing Rules, and the Code for the Technical Assessment and Valuation of Mineral and Petroleum Assets and Securities for Independent Expert Reports (the "VALMIN Code"). We were also engaged to perform independent technical review for the Competent Person's Report on the mineral resources and ore reserves of the Target Group in compliance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code").

In addition, our professional consultants are highly competent in providing technical due diligence, feasibility studies and operation consulting services under codes approved by the HKEx from time to time and compliance with regulatory standards.

We also provide professional advice on business value of the target mining company for the purpose of corporate internal reference.

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