Central China Land Media Co. Ltd. (SZSE:000719) signed the conditional acquisition agreement to acquire 100% stakes in four companies from Central China Publishing & Media Investment Holding Group Co., Ltd. for CNY 2.8 billion in cash and stock on August 7, 2013. The four companies to be acquired are Henan Xinhua Bookstore Publishing Group Co., Ltd., Henan Publishing Industry Foreign Trading Corporation Limited, Henan People's Publishing House Co., Ltd. and Henan Zhengzhou Xinhua Bookstore Co., Ltd. Under the terms of the deal, Central China Land Media will issue 260 million shares and will pay cash. The transaction includes Central China Publishing & Media Investment Holding Group's CNY 5 million worth of entrusted loan creditor's rights in Daxiang Press (subsidiary of Central China Land Media). Central China Land will also issue 113.25 million shares at CNY 8.4 per share through private placement to raise CNY 951 million. As of November 8, 2013, the terms of the agreement were amended and deal value is now CNY 3.7 billion. Under the revised terms, Central China Land Media will issue 269.48 million shares and will pay cash of CNY 443.7 million which includes CNY 5 million worth of entrusted loan creditor's rights in Daxiang Press. In addition, Central China Land will also issue 117.38 million shares at CNY 8.4 per share through private placement to raise CNY 986 million which will be used to pay cash consideration in the acquisition.

As of December 31, 2013, Henan Xinhua Bookstore Publishing Group had total assets of CNY 4.16 billion, total liabilities of CNY 1.8 billion; owner's equity of CNY 2.35 billion, revenues of CNY 4.07 billion, total profit of CNY 329.69 million and net profit of CNY 327.65 million. As of December 31, 2013, Henan Publishing Industry Foreign Trading had total assets of CNY 85.29 million, total liabilities of CNY 81.66 million; owner's equity of CNY 3.64 million, revenues of CNY 241.48 million, total profit of CNY 0.44 million and net profit of CNY 0.33 million. As of December 31, 2013, Henan People's Publishing House had total assets of CNY 48.86 million, total liabilities of CNY 33.65 million; owner's equity of CNY 15.21 million, revenues of CNY 41.48 million, total profit and net profit of CNY 2.48 million. As of December 31, 2013, Henan Zhengzhou Xinhua Bookstore had total assets of CNY 294.27 million, total liabilities of CNY 233.95 million; owner's equity of CNY 60.32 million, revenues of CNY 249.6 million, total profit and net profit of CNY 4.62 million.

The transaction was approved by Board of Directors of Central China Land Media on August 7, 2013. On November 25, 2013, the transaction was approved by shareholders of Central China Land Media. On November 18, 2013, the State-owned Assets Supervision and Administration Commission of Henan approved the transaction. On June 13, 2014, China Securities Regulatory Commission approved the transaction. On July 21, 2014, Central China Land Media completed the acquisitions of Henan Xinhua Bookstore Publishing Group, Henan Publishing Industry Foreign Trading Corporation and Henan People's Publishing House. Guotai Junan Securities Co., Ltd. acted as financial advisor for Central China Land Media.