China Aviation Optical-Electrical Technology Co Ltd (SZSE:002179) entered into a letter of intent to acquire not less than 51% stake in Xian Forstar S&T Co., Ltd. from China-Belgium Direct Equity Investment Fund L.P. managed by China Development Financial Co., Ltd and Haitong-Fortis Private Equity Fund Management Co., Ltd., Shaanxi Venture Capital Guiding Fund Centre, Guo Jianxiong, 38 other individuals and other shareholders for approximately CNY 190 million in cash on October 24, 2013. After completion of the transaction, Xi'an Forstar will become a subsidiary of China Aviation Optical. China Aviation will use own funds for the funding the transaction. For the year ended December 31, 2012, Xian Forstar generated total revenues of CNY 281.41 million, net income of CNY 15.32 million, profit before tax of CNY 17.65 million and has total assets of CNY 289.52 million. For the nine months ended September 30, 2013, the total assets of Xi'an Forstar amounted to CNY 307.71 million, revenue amounted to CNY 224.47 million, net profits before tax of CNY of 18.38 million and net profits after tax of CNY 15.63 million.

As on November 13, 2013, China Aviation Optical entered into equity transfer agreements to acquire 48.2% stake in Xian Forstar S&T Co. from China-Belgium Direct Equity Investment, Shaanxi Venture Capital Guiding Fund Centre and other shareholders for approximately CNY 130 million.