Aecc Aviation Power Co.,Ltd (SHSE:600893) entered into an agreement to acquire 31.23% stake in China Hangfa Shenyang Liming Airline Engine Co., Ltd., 29.14% stake in AECC Guizhou Liyang Aviation Power Co., Ltd. and 13.26% stake in China Hangfa South Aviation Industry Co., Ltd. from group of sellers for CNY 9.8 billion on July 19, 2019. Under the terms, 412.9 million shares of Aecc Aviation Power were issued. Aecc Aviation Power Co.,Ltd issued around 96.4 million shares to Aero Engine Corporation of China, 97.4 million shares to Beijing Guofa Aviation Engine Industry Investment Fund Center (Limited Partnership), 48.7 million shares to the National Military and Civilian Integration Industry Investment Fund Co., Ltd., 48.7 million shares to BOCOM Financial Asset Investment Co., Ltd, 48.7 million shares to Shenzhen Xinmaisui Investment Management Co., Ltd., 48.7 million shares to China Orient Asset Management Co., Ltd., and 24.4 million shares to Beijing Gongrong Jintou No.1 Investment Management Partnership. On July 15, 2020, Aecc Aviation’s 2019 profit distribution plan was implemented. The issue price of Aecc’s shares to purchase assets was adjusted from CNY 20.56 per share to CNY 20.42 per share, and the number of shares issued was adjusted from 412.92 million shares to 415.75 million shares. For the year ended December 31, 2018, China Hangfa Shenyang Liming Airline Engine Co., Ltd. reported total assets of CNY 18.3 billion, revenues of CNY 11.2 billion and EBIT of CNY 417.7 million, AECC Guizhou Liyang Aviation Power Co., Ltd. reported total assets of CNY 11.8 billion, revenues of CNY 3.4 billion and EBIT of CNY 62.8 million while China Hangfa South Aviation Industry Co., Ltd. reported total assets of CNY 10.9 billion, revenues of CNY 4.9 billion and operating revenues of CNY 366.8 million. The deal is subject to approval from shareholders of Aecc Aviation Power Co.,Ltd and internal decision making units of sellers, approval of the military affairs, approval from CSRC and state-owned assets supervision and administration department. The Board of Directors of Aecc Aviation Power Co.,Ltd need to approve the formal definitive plan. The deal is approved by the Board of Directors of Aecc Aviation Power Co.,Ltd, internal decision-making body of China Aviation Development. As per announcement of January 13, 2020, the deal is approved by military affairs and state-owned assets supervision and administration department. On February 20, 2020, the transaction was approved by Board of Directors of Aero Engine Corporation of China. On February 24, 2020, the transaction was approved by the shareholders of Aecc Aviation at the 2nd Extraordinary Shareholders Meeting of 2020. As on May 11, 2020, the transaction is approved by the China Securities Regulatory Commission. As of June 11, 2020, Aecc Aviation Power Co.,Ltd received the "Response for Approval of China Aviation Power Co., Ltd. to Issue Shares to Purchase Assets from Aecc Aviation Power Co.,Ltd" (CSRCPermit [2020] No. 1072). The transaction was approved by West Air Company, CATIC, by the counterparty and the National Defense Science and Industry Bureau in reviewing military-related matters. Wang Ling, Zhang Minghui, Yang Meng, Huang Kai, Hu Zhongjun, Wei Ziting, Xu Yaou, Wang Xiaoye, Qin Bowen, Gao Chuhan of CITIC Securities Company Limited (SHSE:600030) acted as financial advisors; Lai Yi, Liu Zhuoli of Jiayuan Law acted as legal advisors and Huang Liqiong, Zhao Xin of Union Power Certified Public Accountants acted as accountants for Aecc Aviation Power Co.,Ltd.