Hefei Fengle Seed Co., Ltd (SZSE:000713) agreed to acquire Sichuan Tonglu Agricultural Science and Technology Co., Ltd from group of shareholders for CNY 290 million on May 8, 2018. Hefei Fengle Seed Co., Ltd and group of shareholders signed an agreement on May 15, 2018. Under the terms, 65% of the total consideration will be paid through issuance of 30.3 million shares while remaining 35% of the total consideration (CNY 101.5 million) will be paid through cash. The cash consideration is funded by Hefei Fengle Seed Co., Ltd issuing shares to not more than 10 specific investors to raise supporting funds of not more than CNY 185 million. Sichuan Tonglu Agricultural Science and Technology Co., Ltd reported total assets of CNY 154.6 million as of December 31, 2017, revenues of CNY 82.02 million and operating profit of CNY 11.4 million in 2017. The transaction is subject to approval from State-owned Assets Supervision and Administration Commission of Anhui, approval from Hefei Fengle Seed Co., Ltd shareholders at the meeting and approval from China Securities Regulatory Commission. The transaction has been approved by the shareholders of Sichuan Tonglu Agricultural Science and Technology Co., Ltd at the shareholders’ meeting held on May 8, 2018 and approved by the Board of Directors of Hefei Fengle Seed Co., Ltd at the 50th session of the 5th directorate held on May 15, 2018. As on June 6, 2018, the transaction has been approved by State-owned Assets Supervision and Administration Commission of Anhui. On June 12, 2018, the shareholders of Hefei Fengle Seed Co., Ltd approved the transaction. As on December 18, 2018, the transaction has been approved by China Securities Regulatory Commission. Gao Zhen and Liu Jinhua of Guoyuan Securities Company Limited (SZSE:000728) acted as financial advisors, Li Hejin, Wu Zhonghong and Zhang Dongxiao of AllBright Law Offices acted as legal advisors and Li Jing and Meng Fanyong of Moore Stephens Da Hua acted as accountants to Hefei Fengle Seed Co., Ltd.