Hunan Valin Steel Co., Ltd. (SZSE:000932) entered into an agreement to acquire remaining 13.68% stake in Hunan Valin Xiangtan Iron and Steel Co., Ltd., 44.17% stake in Hunan Valin Lianyuan Iron & Steel Co., Ltd. and 43.42% stake in Hengyang Valin Steel Tube Co., Ltd from a group of sellers for CNY 8.6 billion on December 7, 2018. Under the terms of the transaction, Hunan Valin Steel Co., Ltd. will issue 1.4 billion shares as consideration. On June 13, 2019, the issue price was adjusted to CNY 4.58 per share and amount of shares to be issue was adjusted to 1.9 billion shares. The consideration was revised to CNY 8.9 billion. In a related deal, Hunan Valin Steel Co., Ltd. entered into an agreement to acquire Hunan Valin Energy Saving Power Generation Co., Ltd. from Lianyuan Iron and Steel Group Co., Ltd. for CNY 1.8 billion on December 7, 2018. After completion, Hunan Valin Steel Co., Ltd. will own 100% stake in Hunan Valin Xiangtan Iron and Steel Co., Ltd., Hunan Valin Lianyuan Iron & Steel Co., Ltd. and Hengyang Valin Steel Tube Co., Ltd. For the year ended December 31, 2017, Hunan Valin Xiangtan Iron and Steel Co., Ltd. reported total assets of CNY 26.3 billion, net assets of CNY 7.2 billion, revenue of CNY 34.9 billion, and net profit of CNY 2.6 billion. For the year ended December 31, 2017, Hunan Valin Lianyuan Iron & Steel Co., Ltd. reported total assets of CNY 22.8 billion, net assets of CNY 4.3 billion, revenue of CNY 31.7 billion, and net profit of CNY 2.5 billion. For the year ended December 31, 2017, Hengyang Valin Steel Tube Co., Ltd. reported total assets of CNY 13.3 billion, net assets of CNY 979.3 million, revenue of CNY 6.96 billion, and net profit of CNY 77.9 million. The transaction is subject to approval of a second approval from the shareholders’ meeting of Hunan Valin, the Hunan Provincial State-owned Assets Supervision and Administration Commission still needs to approve the formal plan for this transaction, the China Securities Regulatory Commission still needs to approve the transaction plan. The transaction has been approved at the 28th meeting of the sixth board of directors of Hunan Valin Steel, transaction plan has obtained the principled consent of the Hunan Provincial State-owned Assets Supervision and Administration Commission and trading plan has been approved by the internal decision making units of the counterparties. As of March 29, 2019, the transaction was approved by the 2nd session of the 7th directorate of Hunan Valin Steel Co., Ltd. Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the CSRC conditionally approved the transaction on August 14, 2019. The Hunan Provincial State-owned Assets Supervision and Administration Commission approved the transaction plan and the shareholders of Hunan Valin Steel Co., Ltd. approved the transaction. Lin Jiawei, Liu Kun, and Xue Wanbao of CITIC Securities Company Limited (SHSE:600030), Lin Junjian and Wang Du of Huatai United Securities Co., Ltd., and Yan Yaping and Wang Yuanting of China Fortune Securities Co., Ltd. acted as independent financial advisors for Hunan Valin Steel. Fu Yangyuan and Liu Zhuoli of Jiayuan Law acted as legal advisors, and He Huanhua, Li Xinkui, Liu Gangyue, Zheng Shengjun, and Zhou Yi of Pan-China Certified Public Accountants LLP acted as accountants to Hunan Valin Steel. Hunan Valin Steel Co., Ltd. (SZSE:000932) completed the acquisition of remaining 13.68% stake in Hunan Valin Xiangtan Iron and Steel Co., Ltd., 44.17% stake in Hunan Valin Lianyuan Iron & Steel Co., Ltd. and 43.42% stake in Hengyang Valin Steel Tube Co., Ltd from a group of sellers on December 27, 2019.