Changchun High & New Technology Industry (Group) Inc. (SZSE:000661) agreed to acquire 29.5% stake in GeneScience Pharmaceuticals Co., Ltd. from Jin Lei and Lin Dianhai for CNY 7.2 billion on March 6, 2019. 92.02% of the total transaction price will be paid by issuance of 29.9 million shares and 7.98% of the total transaction price will be paid by issuance of convertible bonds. Jin Lei will receive the consideration through issuance of 23.3 million shares of Changchun High & New Technology and CNY 450 million though issuance of bonds of Changchun High & New Technology in exchange for 23.5% stake being sold. Lin Dianhai will receive the consideration through issuance of 6.6 million shares of Changchun High & New Technology in exchange for 6% stake being sold. Changchun High & New Technology Industry (Group) Inc will issue shares of not more than CNY 1 billion to raise supporting funds. GeneScience Pharmaceuticals had total assets of CNY 1.9 billion and net assets of CNY 1.4 billion as of December 31, 2018. For the year ending December 31, 2018, GeneScience Pharmaceuticals had revenues of CNY 3.2 billion and operating profit of CNY 1.3 billion. The transaction is subject to another approval by Board of Changchun High & New Technology Industry (Group) after the completion of the audit and appraisal works. The transaction is subject to approval by shareholders of Changchun High & New Technology Industry (Group) Inc., State-owned assets supervision and administration department and China Securities Regulatory Commission. The transaction is approved by the Board of Changchun High & New Technology Industry (Group) Inc on March 6, 2019. On June 5, 2019, the 9th session of Changchun High & New Technology Industry’s 9th directorate approved the proposal on the acquisition of asset through issuance of shares and convertible bonds and raising of supporting funds formal plan. On June 20, 2019, the State-owned Assets Supervision and Administration Commission of Jilin Province approved the asset acquisition. On June 21, 2019, the shareholders of Changchun High & New Technology Industry (Group) Inc. approved the transaction. On August 23, 2019, Changchun High & New Technology Industry (Group) Inc. held the thirteenth meeting of the ninth directorate, deliberating and approving the relevant proposals such as the adjustment of the issued shares and convertible bonds to purchase assets and the collection of matching funds and related party transactions. On September 1, 2019, Changchun High & New Technology Industry (Group) Inc. held the 14th meeting of the 9th directorate, deliberating and approving the re-adjusted issue of the issued shares and convertible bonds to purchase assets and raise matching funds and related party transactions and other related proposals. Changchun High & New Technology Industries Group Inc gets securities regulator approval on November 7, 2019. Wang Changqing of China Securities Co., Ltd. and Yu Weijia of ZTF Securities Co., Ltd. acted as financial advisors, Qiao Jiaping of Beijing Kang Da Law Firm acted as legal advisor, Li Dan of PricewaterhouseCoopers Zhong Tian LLP and Wu Weixing and Hu Yonghua of Wuyige Certified Public Accountants LLP acted as accountant for Changchun High & New Technology Industry. Changchun High & New Technology Industry (Group) Inc. (SZSE:000661) completed the acquisition of 29.5% stake in GeneScience Pharmaceuticals Co., Ltd. from Jin Lei and Lin Dianhai on November 12, 2019.