Sichuan Jinyu Automobile City (Group) Co., Ltd. (SZSE:000803) agreed to acquire 86.34% stake in Shandong Shifang Environmental Protection& Bio-Energy Co., Ltd. from group of investors for approximately CNY 390 million on November 4, 2019. The group of investors include Gan Hainan, Duan Mingxiu, Suzhou Pengbo Venture Capital Enterprise (Limited Partnership) managed by Suzhou Xinsheng Investment Management Limited, Guangzhou Toshan Venture Capital Partnership Enterprise (Limited Partnership), Guangzhou Shangzhi Venture Capital Enterprise (Limited Partnership), Zhang Guoyong, Xingfu No. 1 Zhanlve Investment Fund managed by of Richen Investment Management Co., Ltd., Chen Pei, Wang Kaijun, Cai Qinghong, Guangzhou Toshang Equity Investment Center (Limited Partnership), Chen Yu, Tang Yutong, Wang Xiaolin, Wang Ling, Shuai Dandan, Yang Yunfeng, Chen Ying, Li Liang, Pan Jianqiang, Guo Wei, Wang Feng, Zheng Wenjun, Wang Rongjian, Zhang Guanglan, Mu Hong, Gao Guiyao, Zhang Xianzhong, Li Lifang, Yuan Weimin, Zhao Bing, Xu Tian, Liang Ruihuan, and Zhao Yue. The consideration for the transaction will be paid in shares and cash. Under the terms, Sichuan Jinyu Automobile will issue 26.3 million shares to pay for the transaction and CNY 41 million in cash. As of February 17, 2020, Sichuan Jinyu Automobile City (Group) Co. approved the adjustment of transaction consideration. Under the adjustment, Sichuan Jinyu Automobile City (Group) Co. will issue 27,771,636 shares to Shandong Shifang Environmental Protection& Bio-Energy’s shareholders. The transaction price of the 86.34% stake in Shifang Environmental is CNY 393.7 million. The 89.58% of the transaction price, that is CNY 352.7 million, will be paid via share issuance; 10.42% of the transaction price, that is CNY 41 million will be paid via cash payment. Sichuan Jinyu Automobile City plans to raise supporting funds by issuing shares to not more than 10 investors, including Beijing Beikong Guangfu Technology Development Co., Ltd., who will subscribe with not more than CNY 180 million. The total fund raising would not exceed CNY 350 million. The proceeds will be used for the acquisition’s cash considerations, the intermediary fees, the target companies’ projects under construction, and to supplement the Company’s working capital. The shares Beijing Beikong Guangfu Technology Development Co., Ltd. subscribes to cannot be transferred within 36 months from the listing date, and the shares the other investors subscribe to cannot be transferred within 12 months from the listing date. In a related transaction, Sichuan Jinyu Automobile City (Group) Co., Ltd. will acquire 60% stake in Beijing SINOENC Engineering Technology Co., Ltd. from Wei Quanyuan, Yan Zhong, Beijing Zhongyuan Chuangneng Management Consulting Center (Limited Partnership) and Beijing E20 Environment Co., Ltd. The transaction is subject to relevant procedures of the state-owned assets supervision and administration department, approval by Board of Directors of Sichuan Jinyu Automobile City after the target companies’ audit and assessment work are completed and the transaction prices are confirmed, approval by the shareholders of Sichuan Jinyu Automobile City and approval by China Securities Regulatory Commission. The Board of Sichuan Jinyu Automobile City approved the transaction on November 4, 2019. As on December 18, 2019, Shandong Shifang Environmental Protection& Bio-Energy Co., Ltd. held a shareholders meeting, and approved the transaction. The China Securities Regulatory Commission listed company merger and reorganization review committee approved the issuance of shares and payment of cash to purchase assets and related transactions on May 28, 2020. ZTF Securities Co., Ltd., AllBright Law Offices and Pan-China Certified Public Accountants LLP acted as financial, legal and accounting advisors respectively for Sichuan Jinyu. Sichuan Jinyu Automobile City (Group) Co., Ltd. (SZSE:000803) completed the acquisition of 86.34% stake in Shandong Shifang Environmental Protection& Bio-Energy Co., Ltd. from group of investors on July 1, 2020.