Kunming Sinobright (Group) Co., Ltd. (SZSE:000560) agreed to acquire a 94% stake in Beijing 5i5j Real Estate Brokerage Co., Ltd. from a group of sellers for CNY 8 billion on February 19, 2017. On June 4, 2017, an agreement was signed. Kunming Sinobright will issue a total of 507.41 million shares and will pay CNY 1.8 billion in cash as consideration. One of the sellers, Beijing Weiye Celue Real Estate Investment Consulting Co., Ltd, will only receive cash consideration of CNY 757.62 million and Tianjin Dongyin Yuheng Enterprise Management Consulting Center (Limited Partnership), Ganzhou Ruide Investment Management Partnership (limited partnership), Yao Jiajia, Zhao Tielu, Tibet Lihe Investments Management Co., Ltd., Ji'an Taihe Dali Investment Management Co., Ltd. and Beijing Zhiyi Aijia Venture Capital Center (limited partnership) will be issued a total of 224.8 million shares as consideration. Liu Tian, Lin Jie, Zhang Xiaojin, Li Bin, Beijing Maolin Taijie Investment Management Center (Limited Partnership), Beijing Xin Zhong Jiewen Investment Management Center (limited partnership), Dazi Times Investment Management Center Co., Ltd, Lu Binbin and Xu Bin will receive both cash and shares as consideration. As on September 25, 2017, deal terms were revised. Kunming Sinobright (Group) Co., Ltd. will now acquire 84.44% stake in Beijing 5i5j Real Estate Brokerage Co., Ltd. from 16 sellers for CNY 6.4 billion. Lin Jie, one of the sellers will no longer participate in the transaction. The consideration comprises CNY 1.6 billion in cash and 454.6 million new Class A common shares of Kunming Sinobright (Group) Co., Ltd. Kunming Sinobright will issue shares to not more than 10 specific investors for a total amount not in excess of CNY 2.5 billion to fund the cash portion. As on September 25, 2017, Kunming Sinobright (Group) Co., Ltd. announced to raise CNY 2.3 billion from 10 designated investors to fund the transaction. As of October 8, 2017, Kunming Sinobright (Group) Co., Ltd. amended the number of shares to be issued as consideration due to change in issue price after company's 2016 annual profit distribution plan. Kunming Sinobright (Group) Co., Ltd. will now issue a total of 455.2 million shares. Kunming Sinobright (Group) Co., Ltd. also amended the amount of supporting funds to not more than CNY 1.66 billion. For the year ended December 31, 2016, Beijing 5i5j Real Estate Brokerage Co., Ltd. reported total revenues of CNY 8.2 billion, total assets of CNY 4.8 billion, operating profit of CNY 443.6 million, net income of CNY 324.9 million and net assets of CNY 478.4 million. The transaction is subject to the approval of the Board of Directors and the shareholders of Kunming Sinobright (Group) Co., Ltd., China Securities Regulatory Commission and Ministry of Commerce regarding concentration of undertakings. The transaction was approved by the partners of the stockholders of Beijing 5i5j Real Estate Brokerage Co., Ltd on February 19, 2017, by the stockholders of Beijing 5i5j Real Estate Brokerage Co., Ltd. on February 20, 2017 and by the Board of Kunming Sinobright (Group) Co., Ltd. on February 26, 2017. On June 4, 2017, the Board of Directors of Kunming Sinobright (Group) Co., Ltd. re-approved the deal. On June 22, 2017, the shareholders of Kunming Sinobright (Group) Co., Ltd. approved the deal. On September 25, 2017, the Board of Directors of Kunming Sinobright (Group) Co., Ltd. approved the revised terms. On October 12, 2017, the transaction was approved by the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission. On November 3, 2017, the transaction was approved by the CSRC. Guotai Junan Securities Co.,Ltd. (SHSE:601211) acted as a financial advisor, Grandway Law Offices acted as a legal advisor and Ernst & Young LLP acted as the auditor for Kunming Sinobright (Group) Co., Ltd.