ROAD KING INFRA (ASX: 01098) has announced the termination of its planned acquisition of a 51% stake in a Beijing Shunyi project. The company's indirectly wholly-owned subsidiary was set to acquire the stake from Beijing Xuke. The target company, Beijing Shunhe Renyi Real Estate Development Co., Ltd., is a joint venture established for the development of the Beijing Shunyi Park and Royal Residence project.

The group recently received notification that the target equity interest is now subject to enforcement proceedings initiated by a creditor of Beijing Xuke. This legal action will be handled in China through a judicial auction process. Consequently, Beijing Xuke has failed to complete the transfer of the target equity as stipulated in the share transfer agreement, leading to the termination of the proposed acquisition.

The group has taken measures to recover the 1.725 billion yuan already paid to Beijing Xuke, which constituted the first two installment payments under the terms of the share transfer agreement. These measures include initiating arbitration proceedings.

ROAD KING INFRA retains its existing 49% ownership stake in the target company. The entire Beijing Shunyi development project comprises 802 units. Of these, 779 units, representing approximately 97% of the total project, were pre-sold. Following the project's completion in December 2024, a total of 777 of these pre-sold units have been delivered to buyers.