Beijing Sinnet Technology co., Ltd. (SZSE:300383) agreed to acquire Beijing Zhongjin Yunwang Technology Co., Ltd. from 9 companies and 16 individuals for CNY 2.4 billion in cash and stock on September 16, 2015. Sellers includes Zhongjin Shengshi Investment Co., Ltd., Shenzhen Tiantu Xingrui Venture Capital Co., Ltd., Jiangsu Guotou Hengying Venture Capital Center, Tianjin Tiantu Xingsheng Equity Investment Fund Partnership (Limited Partnership), Beijing Liyuan Dingsheng Investment Management Center (Limited Partnership), Beijing Yuyang Jinda Investment Management Center (Limited Partnership), Beijing Zhuochengda Investment Center (Limited Partnership), Shenzhen Tiantu Equity Investment Fund Management Enterprise (Limited Partnership), Beijing Liyang Shengda Investment Management Center (Limited Partnership), Yang Yu, Xu Qingliang, Xu Houhua, Che Zhiyuan, Gao Shujie, Wang Youchang, Huang Yuzhen, Zhao Zhongbin, He Changjin, Wang Dening, Yang Junjie, Chen Jing, Zheng Shanwei, Tang Zhengwei, Shen Haishan and Xu Xiaoping.

As part of consideration, Beijing Sinnet Technology co., Ltd. is issuing 37.22 million shares at CNY 49.27 per share and paying CNY 580 million in cash. Zhongjin Shengshi Investment Co., Ltd. will sell 37.22% stake for 8.01 million shares and CNY 580 million in cash, all other sellers will receive shares of Beijing Sinnet Technology co., Ltd. As of October 21, 2015, Beijing Sinnet Technology co., Ltd. is issuing 74.51 million shares at CNY 24.61 per share and paying CNY 580 million in cash.

Shares will be issued toward not more than 5 specific investors to raise supporting funds of not more than CNY 2.9 billion to finance the transaction. For the period ending December 31, 2014, Beijing Zhongjin Yunwang Technology Co., Ltd. reported total assets of CNY 1.42 billion, total liabilities of CNY 1.04 billion, net liabilities of CNY 375.64 million, revenues of CNY 206.71 million and net profit of CNY 30.85 million. Board of Directors of Beijing Sinnet Technology co., Ltd. approved the transaction. This transaction still needs the approval of Beijing Sinnet Technology co., Ltd.'s shareholders meeting and the approval of the China Securities Regulatory Commission.

On October 20, 2015, the transaction was approved by shareholders of Beijing Zhongjin Yunwang Technology. As on November 6, 2015, the transaction was approved by the shareholders of Beijing Sinnet Technology Co., Ltd. On February 2, 2016, approval document from China Securities Regulatory Commission was received. Southwest Securities Co., Ltd. acted as financial advisor to Beijing Sinnet Technology co., Ltd. Jiayuan Law Firm acted as the legal advisor to Beijing Sinnet Technology co., Ltd. Zhongxinghua Certified Public Accountants LLP acted as the accountant for Beijing Sinnet Technology co., Ltd.

Beijing Sinnet Technology co., Ltd. (SZSE:300383) completed the acquisition of Beijing Zhongjin Yunwang Technology Co., Ltd. from 9 companies and 16 individuals for CNY 3.4 billion on February 3, 2016. As of April 13, 2016, the number of consideration shares issued is revised and now 74.6 million shares are issued.