Zhejiang Huafeng Spandex Co., Ltd (SZSE:002064) intends to acquire Zhejiang Huafon New Materials Co., Ltd. from Huafon group co., LTD, You Xiaoping, You Jinhuan and You Xiaohua for CNY 15.3 billion on April 9, 2019. Under the term, 90% of the consideration will be paid in stock at an issue price of CNY 4.15 per share, amounting to CNY 10.8 billion. The remaining 10% of the consideration of CNY 1.2 billion will be paid in cash. Zhejiang Huafeng Spandex will pay 1.73 billion shares and CNY 796.8 million to Huafon Group, 249.8 million shares and CNY 115.2 million to You Xiaoping, 312.29 million shares and CNY 144 million to You Jinhuan and 312.29 million shares and CNY 144 million to You Xiaohua. Zhejiang Huafeng Spandex Co., Ltd will issue A shares to not more than 10 specific investors to raise supporting funds. Issue volume will not exceed 20% of the Zhejiang Huafeng Spandex Co., Ltd’s total capital prior to this issuance. Shares subscribed in this raising of supporting funds must not be transferred within 12 months after the listing date. Supporting funds raised will be used to pay for this transaction’s cash consideration, transaction-related tax fees and intermediary institution fees, replenishment of the company’s and target’s working capital, repayment of loan. As of December 31, 2018, Zhejiang Huafon New Materials Co., Ltd. reported total assets of CNY 8.7 billion and total owners’ equity of CNY 3.4 billion. For the year ended December 31, 2018, Zhejiang Huafon New Materials Co., Ltd. reported total revenue of CNY 10.7 billion, operating profit of CNY 1.7 billion and net profit of CNY 1.5 billion. The transaction is subject to another directorate of Zhejiang Huafeng Spandex Co., Ltd approve this transaction, Zhejiang Huafeng Spandex Co., Ltd's shareholders’ meeting, approval of state administration for market regulation’s anti-monopoly review and approval of CSRC. Huafon Group’s internal decision making body approved this transaction. On April 9, 2019, the 5th session of the Zhejiang Huafeng Spandex Co., Ltd's 7th directorate approved the acquisition. The transaction was approved by Board of Directors of Zhejiang Huafeng Spandex in the 8th session of the 7th directorate meeting and 6th session of the 7th supervisory board meeting held on June 26, 2019. As on August 1, 2019, the transaction was approved by the shareholders of Zhejiang Huafeng Spandex. On September 27, 2019, Zhejiang Huafeng Spandex Co., Ltd received approval from Merger, Acquisition, and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission in its 46th work meeting of 2019. As of September 29, 2019, transaction has been approved by CSRC. On November 7, 2019, the Zhejiang Huafeng received approval from China Securities Regulatory Commission. Ge Shaozheng, Shao Difan, Zhang Yao, Yan Sihua, Wang Rui, Chen Kebin, Lv Hanyin, Gu Lishan and Liu Chang of Citi Orient Securities Company Ltd. and Wu Xunxian, Wang Xin, Liu Ende and Jiang Chengqi of Donghai Securities Co., Ltd. acted as a financial advisors, Xu Jiawu, Ma Jihui and Chen Haidong of Beijing Hairun Law Firm acted as a legal advisors and Zhang Jianxin and Hu Junxian of BDO China SHU LUN PAN Certified Public Accountants LLP acted as an accountant to Zhejiang Huafeng Spandex. Sun Min and Wang Xiaokang of Pan-China Certified Public Accountants LLP acted as an accountant to Zhejiang Huafon New Materials. Zhejiang Huafeng Spandex Co., Ltd (SZSE:002064) completed the acquisition of Zhejiang Huafon New Materials Co., Ltd. from Huafon group co., LTD, You Xiaoping, You Jinhuan and You Xiaohua on November 15, 2019. Both cash and stock consideration and raising of supportive funds of CNY 2 billion are pending.