Hengyi Petrochemical Co., Ltd. (SZSE:000703) entered into an agreement to acquire Taicang Yifeng Chemical Fiber Co., Ltd. from Zhejiang Hengyi Group Co., Ltd. for CNY 1.3 billion on March 13, 2018. Hengyi Petrochemical Co., Ltd signed the conditional agreement with Zhejiang Hengyi Group Co., Ltd on April 2, 2018. Under the terms of the transaction, Hengyi Petrochemical Co., Ltd. will issue 63.44 million shares at CNY 16.71 per share as consideration. On April 3, 2018, the terms of the deal has been revised. Under the revised terms, Hengyi Petrochemical Co., Ltd will issue 53.1 million shares at CNY 19.81 per share as consideration. On August 30, 2018, the terms of the deal has been revised. Under the revised terms, Hengyi Petrochemical Co., Ltd will issue 75.7 million as consideration. In related deals, Hengyi Petrochemical Co., Ltd. entered into an agreement to acquire 100% stake in Jiaxing Yipeng Chemical Fiber Co., Ltd. and Zhejiang Shuangtu New Material Co., Ltd. from Zhejiang Hengyi Group Co., Ltd., Fulida Group Holding Co., Ltd., and Xinghui Chemical Fibre Group Co., Ltd for CNY 3.1 billion on March 13, 2018. For the year ended December 31, 2017, Taicang Yifeng Chemical Fiber Co., Ltd. reported total assets of CNY 1.2 billion, net assets of CNY 789.1 million, revenue of CNY 456.9 million, and net profit of CNY 18.1 million. The transaction is subject to secondary directorate approval by the Board of Directors of Hengyi Petrochemical Co., Ltd., approval of shareholders of Hengyi Petrochemical Co., Ltd., approval from the Ministry of Commerce, and approval from China Securities Regulatory Commission. On March 13, 2018, the transaction has been approved by the internal decision-making body of Zhejiang Hengyi Group Co., Ltd., the internal decision-making body of Taicang Yifeng Chemical Fiber Co., Ltd., and 10th directorate in its 9th meeting of Hengyi Petrochemical Co., Ltd. On April 2, 2018, Hengyi Petrochemical’s10th session of the 10th directorate meeting reviewed and approved adjustments in this acquisition. On May 4, 2018, Hengyi Petrochemical’s 14th session of the 10th directorate meeting reviewed and approved proposals related to the transaction. On May 21, 2018, Hengyi Petrochemical’s 4th extraordinary general meeting reviewed and approved the transaction. On August 29, 2018, Hengyi Petrochemical 18th session of the 10th directorate meeting reviewed and approved the revised transaction. The anti-monopoly bureau of the State Administration for Market Regulation has issued the decision of not implementing further review of concentration of business operators on matters involving concentration of business operators of this transaction. The transaction has been conditionally approved by China Securities Regulatory Commission's listed company mergers and acquisitions review committee at the 54th M&A and Reorganization Committee working meeting of 2018 on November 1, 2018. Hengyi Petrochemical has not received the official approval document from the China Securities Regulatory Commission and will be announced separately after receiving the relevant approval documents from the China Securities Regulatory Commission. On November 27, 2018, the transaction received official approval from China Securities Regulatory Commission. CITIC Securities Company Limited (SHSE:600030) acted as financial advisor to Hengyi Petrochemical Co., Ltd. T&C Law Firm acted as legal advisor and Ruihua Certified Public Accountants, LLP acted as accountant for Hengyi Petrochemical.