King-Strong New Material Technology Co., Ltd. (SZSE:300629) agreed to acquire Guangdong Kuanpu Technology Co., Ltd. from a group of sellers for CNY 650 million on February 12, 2019. The agreement has not been signed yet. Under the terms of the transaction, King-Strong New Material Technology Co., Ltd. will pay 60% of the consideration in shares at 40% of the consideration in cash. The consideration shares will be issued at CNY 15.3 per share. The cash consideration will be funded through issuance of convertible bonds not exceeding CNY 75 million and common shares for proceeds not exceeding CNY 225 million. As per the revised terms of consideration on March 9, 2019, King-Strong New Material will now pay 50% of the consideration in shares, 10% will be paid in convertible corporate bonds, and 40% will be paid in cash. The shares to be issued as consideration will be issued at CNY 15.30 per share with a total of 21.2 million shares will be issued. As per the revised terms of consideration on May 31, 2019, King-Strong New Material will issue shares at CNY 15.29 per share with a total of 21.3 million shares to be issued. For the year ended December 31, 2018, Guangdong Kuanpu Technology Co., Ltd. reported total assets of CNY 207.6 million, revenue of CNY 120.96 million, and operating profit of CNY 42.8 million. The transaction is subject to another approval from Board of King-Strong New Material Technology Co., Ltd., approval from shareholders of King-Strong New Material Technology Co., Ltd. and Guangdong Kuanpu Technology Co., Ltd., approval from the State Administration of Science, Technology and Industry for National Defense regarding the transaction’s military matters and information disclosure waiver, and approval from China Securities Regulatory Commission. The transaction was approved by the 3rd directorate’s 5th meeting on February 12, 2019. The revised plan was approved by the 3rd directorate’s 6th meeting on March 8, 2019. As on March 11, 2019, the transaction was approved by State Administration of Science, Technology and Industry for National Defense. As on May 21, 2019, the transaction was approved by 3rd Directorate of King-strong New Material. As of May 31, 2019, Directorate of King-strong New Material has approve the proposal relevant to the transaction report. As on July 11, 2019, the transaction was approved by the securities regulator. As on August 9, 2019, the consideration to be provided for the transaction has been approved by China Securities Regulatory Commission. Minsheng Securities Co.,Ltd. acted as financial advisor, Jiayuan Law acted as legal advisor, and GP Certified Public Accountants Co Ltd acted accountant to King-Strong New Material Technology Co., Ltd. Baker Tilly China Certified Public Accountants replaced GP Certified Public Accountants as accountant to King-strong New Material in the transaction. King-Strong New Material Technology Co., Ltd. (SZSE:300629) completed the acquisition of Guangdong Kuanpu Technology Co., Ltd. from a group of sellers on September 23, 2019. On September 23, 2019, Foshan Municipal Market Supervision Administration issued the “Approval Change Registration Notice” to Guangdong Kuanpu Technology Co., Ltd.