Hainan Haiqi Transportation Group Co.,Ltd. (SHSE:603069) agreed to acquire Hainan Travel Investment Duty Free Co., Ltd. from Hainan Tourism Investment Development Co., Ltd. on for CNY 5.001 billion May 27, 2022. The consideration will be paid in combination of cash and stock. The transaction price of the target asset is CNY 5.001 billion of which, 85% (CNY 4.2515 billion) will be paid by share issuance; 15% (CNY 750.282 million) will be paid by cash.

The issue price for this asset acquisition is CNY 11.09 per share. The number of shares to be issued to Hainan Tourism Investment Development Co., Ltd. as payment for this acquisition is 383.3722 million shares. The Hainan Haiqi Transportation will fund the acquisition by raising supporting funds by issuing shares to no more than 35 specific investors.

The Hainan Haiqi Transportation board approved the transaction. The transaction is conditional on approval of shareholders of Hainan Haiqi Transportation, China Securities Regulatory Commission, after the transaction price is determined Hainan Haiqi Transportation needs to convene the board of directors again to review and approve the transaction, may involve other necessary approvals, approvals, filings or licenses required by relevant laws and regulations. As of September 29, 2022, the transaction has been approved by the State-owned Assets Supervision and Administration Commission of Hainan Province.

As on October 10, 2022, Transaction has been approved by the Hainan Haiqi Transportation Group's shareholders. China Security Co., Ltd. acted as a financial advisor, King & Wood Mallesons, China acted as a legal advisor, Jonten Certified Public Accountants Co Ltd. and Moore Stephens Da Hua Certified Public Accountants (Special General Partnership) acted as an accountant to Hainan Haiqi Transportation Group Co.,Ltd.