Annual Report 2009 - Greentown China Holdings Limited

Notes to the Consolidated Financial Statements
For The Year Ended 31 December 2009
40. EVENTS AFTER THE END OF THE REPORTING PERIOD (Continued)
On or before the trust establishment date, Greentown Real Estate and Zhongtai Trust would enter into a
custodian agreement with a custodian bank. Pursuant to the custodian agreement, Greentown Real Estate
shall pay a custodian fee in an amount of not more than RMB30,000,000 to the custodian bank for the
holding of the trust capital.
Before the capital injection, Greentown Real Estate held all of the equity interest in Shanghai Greentown.
After the capital injection, Zhongtai Trust would directly hold a 49% equity interest in Shanghai
Greentown, and Greentown Real Estate would directly hold the remaining 51% equity interest in Shanghai
Greentown.
The trust was established on 11 February 2010 and the aforementioned transactions were completed on
11 February 2010. The directors of the Company are in the process of assessing the financial effects of
these transactions.
(vi)
On 31 March 2010, Hangzhou Greentown Real Estate Investment Co., Ltd. (“Hangzhou Greentown
Investment”), a wholly-owned subsidiary of the Company, and Greentown Real Estate entered into an
equity transfer framework agreement with Qingdao Haixin Real Estate Co., Ltd. (“Qingdao Haixin “) and
Jinan Haixin Real Estate Co., Ltd. (“Jinan Haixin”), a wholly-owned subsidiary of Qingdao Haixin, whereby
Hangzhou Greentown Investment agreed to acquire a 100% equity interest in Shandong Dongcheng Real
Estate Co., Ltd. from Jinan Haixin for an aggregate consideration of RMB1,240,330,000.
This acquisition has not yet been completed as at the date on which these consolidated financial
statements are authorised for issuance. The directors of the Company are in the process of assessing the
financial effects of this acquisition.
(vii) On 16 April 2010, the deadline for the submission of the put exercise notice in respect of the 2007
Convertible Bonds, the Company received from certain bondholders put exercise notices requiring
the Company to redeem part of the 2007 Convertible Bonds with an aggregate principal amount of
RMB2,128,700,000, representing 92.15% of the total principal amount of the 2007 Convertible Bonds
outstanding as at 31 December 2009. Such portion of the 2007 Convertible Bonds will be redeemed for
RMB2,199,926,000 on 18 May 2010.
In addition, certain holders of the 2007 Convertible Bonds with an aggregate principal amount of
RMB1,700,000 opted to convert their holdings into 78,540 shares in the Company at a conversion price of
HK$21.99 per share. Such conversion shares were issued on 16 April 2010.
Greentown China Holdings Limited Annual Report 2009 185