CRRC Industrial Investment Co., Ltd. signed letter of intent to acquire 21.3% stake in Anhui Ankai Automobile Co., Ltd (SZSE:000868) from Anhui Jianghuai Automobile Group Corp.,Ltd. (SHSE:600418) and Anhui Investment Group Holding Co., Ltd on September 16, 2019. As per the terms, 156.2 million shares will be acquired. The final price will be based on Anhui Ankai Automobile Co., Ltd's average share price over the 30 days prior to the publication of the confirmation notice.

Anhui Jianghuai Automobile Group Corp.,Ltd. will sell 12.85% stake and Anhui Investment Group Holding Co., Ltd will sell 8.45% stake. As of the signing date of this letter of intent, Anhui Jianghuai Automobile Group Corp.,Ltd. owns 25.20% stake and Anhui Investment Group Holding Co., Ltd owns 16.58% stake. The stake owned by Anhui Jianghuai Automobile Group Corp.,Ltd. will reduce to 12.35% and stake owned by Anhui Investment Group Holding Co., Ltd will reduce to 8.12%.

The transaction is subject to approval of several regulators. The transaction is expected to complete by January 31, 2020. As per the supplementary agreement 3 on July 30, 2020, the a final agreement on the transfer of the agreement shall have to be signed before December 31, 2020.

As of January 4, 2021, it was not possible to complete the signing of the final transaction agreement on December 31, 2020 and the aforementioned parties will no longer sign a supplementary agreement on the extension of the letter of intent.