China National Accord Medicines Co., Ltd entered into an agreement to acquire 51% stake in Guangdong Southern Pharmaceutical Foreign Trade Co., Ltd. from China National Pharmaceutical Foreign Trade Corporation for approximately CNY 290 million on March 9, 2016. The purchase price shall be satisfied by the issuance of approximately 5.32 million shares of China National Accord Medicines. Purchase price is subject to adjustments. As of May 30, 2016, consideration was revised to approximately 280 million. China National Accord Medicines’ shareholder, Sinopharm Group Co. Ltd has also entered into an agreement to sell stakes in Sinopharm Zhijun (Shenzhen) Pharmaceutical and Sinopharm Zhijun (Shenzhen) Pingshan Pharmaceutica. Shanghai Shyndec Pharmaceutical Co., Ltd. raised CNY 700 million through private placement and cash will be used for the acquisition. The transaction is subject to approval from Board and Shareholder of China National Accord Medicines, Sinopharm Group Co. Ltd., and China National Pharmaceutical Foreign Trade Corporation; approval from State-owned Assets Supervision and Administration Commission (SASAC) and China Securities Regulatory Commission (CSRC); and clearance granted by the Antimonopoly Bureau of the Ministry of Commerce of the People's Republic of China, among others. On September 27, 2016, China Securities Regulatory Commission approved the deal. Gao Yajun of Baker Tilly Hong Kong Limited and PricewaterhouseCoopers Hong Kong acted as accountants for Board of Sinopharm Group. For the year ended December 31, 2015 Guang Dong South Pharmaceutical Foreign Trade Co., Ltd reported revenue of CNY 1.93 billion, total assets of CNY 1.22 billion, net income of CNY 44.5 million and total common equity of CNY 0.22 billion. As of September 28, 2016 shareholders of Guang Dong South Pharmaceutical Foreign Trade Co., Ltd. approved the transaction. China National Accord Medicines Co., Ltd completed the acquisition of 51% stake in Guangdong Southern Pharmaceutical Foreign Trade Co., Ltd. from China National Pharmaceutical Foreign Trade Corporation on December 13, 2016.