Guangdong VTR Bio-Tech Co., Ltd. (SZSE:300381) agreed to acquire 75% stake in Hunan Hong Ying Biological Technology Co Ltd from 21 individuals for approximately CNY 190 million in cash and stock on August 15, 2014. Guangdong VTR will pay CNY 28.13 million in cash and will issue 3.93 million shares as consideration. Guangdong VTR will also raise up to CNY 53.42 million through private placement of shares to fund the acquisition.

Due to stock split, Guangdong VTR Bio-Tech Co., Ltd. decided to issue 7.86 million shares and CNY 28.13 million cash for the acquisition. Li Hongbing will sell 38.61% stake for CNY 96.52 million in cash and 4.05 million in stock, Li Junmin will sell 8.37% stake for CNY 20.92 million in cash and 0.88 million in stock, Zhang Jinjie will sell 7.32% stake for CNY 18.31 million in cash and 0.77 million in stock, Li Haiqing will sell 6.97% stake for CNY 17.43 million in cash and 0.73 million in stock, Zhang Yu will sell 4.18% stake for CNY 10.46 million in cash and 0.44 million in stock, Gao Zhizhong will sell 1.23% stake for CNY 3.08 million in cash and 0.13 million in stock, Cai Xianhong will sell 1.14% stake for CNY 2.84 million in cash and 0.12 million in stock, Li Zhifang will sell 0.95% stake for CNY 2.37 million in cash and 0.10 million in stock, Sun Mingfang will sell 1.05% stake for CNY 2.62 million in cash and 0.11 million in stock, Li Guijin will sell 1.05% stake for CNY 2.62 million in cash and 0.11 million in stock, Zhang Guogang will sell 0.70% stake for CNY 1.74 million in cash and 0.07 million in stock, Zhang Li will sell 0.70% stake for CNY 1.74 million in cash and 0.07 million in stock, Zhang Juan will sell 0.70% stake for CNY 1.74 million in cash and 0.07 million in stock, Xiong Hui will sell 0.70% stake for CNY 1.74 million in cash and 0.07 million in stock, Lu Li will sell 0.28% stake for CNY 0.71 million in cash and 0.03 million in stock, Zi Guangjun will sell 0.35% stake for CNY 0.87 million in cash and 0.04 million in stock, Hong Zhenlan will sell 0.15% stake for CNY 0.38 million in cash and 0.02 million in stock, Hong Jiabing will sell 0.14% stake for CNY 0.35 million in cash and 0.01 million in stock, Hong Zhenxiu will sell 0.14% stake for CNY 0.35 million in cash and 0.01 million in stock, Liu Wenming will sell 0.14% stake for CNY 0.35 million in cash and 0.01 million in stock, and Cui Hong will sell 0.14% stake for CNY 0.35 million in cash and 0.01 million in stock.

Board of Directors of VTR Bio-Tech Co., Ltd. and shareholders of Hunan Hong Ying Biological Technology Co., Ltd unanimously approved the transaction on August 15, 2014. Shareholders of Guangdong VTR Bio-Tech Co., Ltd. approved the transaction on September 26, 2014. The purchase is pending approval by the China Securities Regulatory Commission. The China Securities Regulatory Commission approved the transaction on December 11, 2014. Minsheng Securities Co., ltd. acted as financial advisor and DeHeng Law Offices acted as the legal advisor to Guangdong VTR Bio-Tech Co., Ltd.

Guangdong VTR Bio-Tech Co., Ltd. (SZSE:300381) completed the acquisition of 75% stake in Hunan Hong Ying Biological Technology Co Ltd from 21 individuals on December 29, 2014.