Pursuant to the settlement agreement, GM Investment has obtained full authority from Fortress to recover an outstanding amount of approximately US$250 million from Sanpower Group Limited1 ("Sanpower").

Accordingly, GM Investment has agreed to pay an amount of US$180 million to PAGAC as the final settlement to resolve the claim made by PAGAC. The settlement agreement will become effective upon the approval of shareholders ("Effective Date").

GM Investment will pay the settlement amount in three installments, with the first installment of US$70 million payable within 5 business days from the Effective Date, and the second and third installments of US$55 million each payable within 9 months and 18 months from the Effective Date respectively.

After full payment of the settlement sum, GM Investment will be released and discharged from all claims made by PAGAC, and will bring to the Group a gain of approximately US$70 million.   

Golden Meditech is a leading integrated-healthcare enterprise in China. It is a first-mover in China, having established its dominant positions in several markets including the medical devices market, the cord blood storage market and the hospital management market in the healthcare industry, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities.

Going forward, Golden Meditech will continue to pursue a leading position in China's healthcare industry both through organic growth and strategic expansion.

Sanpower is a well-known private enterprise in Jiangsu Province. At present, both of its total assets and annual turnover have exceeded RMB100 billion. It was ranked in the "Top 500 Chinese Enterprises" for the 13th consecutive year. Its subsidiaries include listing companies such as Hiteker (600122.SH), NJXB (600682.SH) and IDT International (00167.HK), etc.

PAGAC is a closed-end fund with investments across the retail, pharmaceutical, auto services, financial services and media/entertainment sectors. It is also the controlling shareholder of Fortress.