China Merchants Huajian Highway Investment Co.,Ltd signed conditional absorption agreement to acquire remaining 73.18% stake in Huabei Expressway Co., Ltd. for CNY 4.5 billion on June 14, 2017. Under the terms of the transaction, China Merchants Huajian Highway Investment Co.,Ltd will issue 555 million shares of its class A common stock at a price of CNY 8.18 per A-share. Under the new terms of amendment, the exchange ratio for the transaction is 1:0.6956 that is every share in Huabei Expressway Co., Ltd. can be exchanged with 0.6956 share of China Merchants Expressway Network & Technology Holdings Co., Ltd. other terms will remain the same. The purchase represents a per share consideration of CNY 5.93 which works out to CNY 5.69 per share after adjustment for dividend. Dissenting shareholders of Huabei Express have the option for a cash exchange wherein they will receive a price of CNY 4.49 per share. After the completion of the transaction, Huabei Expressway Co., Ltd. will be delisted and China Merchants Expressway Network & Technology Holdings Co., Ltd. will be the surviving entity. The transaction is subject to CSRC approval and the listing and trading of the surviving company’s A shares in Shenzhen Stock Exchange still needs to be approved by Shenzhen Stock Exchange. On June 14, 2017, the transaction has been approved by Board and shareholders of China Merchants Huajian Highway Investment Co.,Ltd and Huabei Expressway Co., Ltd., transaction was approved by the State-owned Assets Supervision and Administration Commission of the State Council, the concentration of undertakings involved in this transaction already gained the approval of the Ministry of Commerce. As of June 28, 2017, the transaction is approved by Assets Supervision and Administration Commission. On October 20, 2017, the Merger, Acquisition and Reorganization Examination Committee of the Listed Companies of CSRC approved this transaction. On November 24, 2017, written approval from CSRC was obtained. China International Capital Corporation Limited (SEHK:3908) and China Merchants Securities Co.,Ltd (SHSE:600999) acted as financial advisor, Zhong Lun Law Firm and Jiayuan Law acted as legal advisor and ShineWing Certified Public Accountants Co., Ltd. acted as account for China Merchants Expressway Network & Technology Holdings Co., Ltd. BOC International (China) Limited acted as financial advisor, Global Law Office acted as legal advisor and ShineWing Certified Public Accountants Co., Ltd. acted as accountant for Huabei Expressway Co., Ltd. China Merchants Huajian Highway Investment Co.,Ltd completed the acquisition of remaining 73.18% stake in Huabei Expressway Co., Ltd on December 25, 2017. Huabei Expressway Co., Ltd will be delisted from Shenzhen Stock Exchange on December 25, 2017.