Huolinhe Opencut Coal Industry Corporation Limited of Inner Mongolia (SZSE:002128) agreed to acquire 51% stake in Inner Mongolia Huomei-Hongjun Aluminium & Electricity Co., Ltd. from SPIC Mengdong Energy Group Co., Ltd. for CNY 2.8 billion on July 20, 2017. Huolinhe Opencut Coal Industry Corporation signed asset acquisition agreement to acquire 51% stake in Inner Mongolia Huomei-Hongjun Aluminium & Electricity from SPIC Mengdong Energy Group Co., Ltd. on July 28, 2017. Huolinhe Opencut Coal Industry Corporation will pay a share consideration of CNY 1 billion and cash consideration of CNY 1.4 billion. CNY Class A common shares will be issued. On March 30, 2018, a supplemental agreement was signed. Under new terms of the agreement, Huolinhe Opencut Coal Industry Corporation Limited adjusted the consideration to CNY 2.8 billion under which 146.4 million shares will be issued and CNY 1.3 billion will be paid as cash. On June 15, 2018, Huolinhe Opencut Coal Industry Corporation signed asset acquisition agreement second supplement agreement to acquire 51% stake in Inner Mongolia Huomei-Hongjun Aluminium & Electricity from SPIC Mengdong Energy Group for CNY 2.8 billion. Huolinhe Opencut Coal Industry Corporation will pay CNY 1.3 billion in cash and CNY 1.5 billion though issuance of 154.2 million shares. On October 18, 2018, Huolinhe Opencut Coal Industry Corporation and SPIC Mengdong Energy Group signed third supplement agreement. In a related transaction, Huolinhe Opencut Coal Industry Corporation agreed to acquire 90% stake in Tongliao Shengfa Thermoelectricity Co., Ltd. from SPIC Mengdong Energy Group Co., Ltd. Huolinhe Opencut Coal Industry Corporation will issue shares to not more than 10 designated investors in a private placement to raise supporting funds of not more than CNY 1.4 billion. A portion of the proceeds shall be used to pay consideration for the acquisition. As of December 31, 2016, Inner Mongolia Huomei-Hongjun Aluminium & Electricity reported total assets of CNY 15.9 billion and total equity of CNY 4.1 billion. For 2016, Inner Mongolia Huomei-Hongjun Aluminium & Electricity reported revenue of CNY 8.9 billion, operating profit of CNY 911.8 million and net profit of CNY 781.5 million. The transaction is subject to secondary directorate approval after Inner Mongolia Huomei-Hongjun Aluminium & Electricity Co., Ltd. asset’s price audit and assessment are completed, approval from the relevant State-owned Assets Supervision and Administration Commission, approval from Huolinhe Opencut Coal Industry Corporation's shareholders and approval from China Securities Regulatory Commission. On June 27, 2017, the shareholders of SPIC Mengdong Energy Group Co., Ltd. agreed to the transaction. The transaction received approval in principle by the State-owned Assets Supervision and Administration Commission of the State Council on July 20, 2017 and approval by Huolinhe Opencut Coal Industry Corporation's 7th special directorate meeting of 2017 on July 28, 2017. As on March 29, 2018, State Council SASAC approved the transaction. On June 15, 2018, the interim directorate meeting of Huolinhe Opencut Coal Industry Corporation Limited of Inner Mongolia approved the transaction. On July 5, 2018, the assessment reports were filed by the State-owned Assets Supervision and Administration Commission of the State Council. On July 11, 2018, State-owned Assets Supervision and Administration Commission of the State Council agreed in principle to the acquisition of assets through the issuance of shares and cash and raising of supporting funds. The transaction has been approved by the shareholders of Huolinhe Opencut Coal Industry Corporation at 2nd Extraordinary Shareholders Meeting of 2018 held on July 13, 2018. Acquisition of Inner Mongolia Huomei-Hongjun Aluminium & Electricity through the issuance of shares and cash and raising of supporting funds has been approved by the Board of Directors of Huolinhe Opencut Coal Industry Corporation at the 11th Extraordinary Directorate Meeting of 2018 held on October 18, 2018. As of November 7, 2018, China Securities Regulatory Commission has approve the transaction. As of December 18, 2018, CSRC approved the issuance of shares for the consideration and the private placement to be carried out by Huolinhe Opencut Coal. Guosen Securities Co., Ltd. (SZSE:002736) and Tang Yun, Zhang Zhongwei, Li Yi, Pu Fei, Yan Yan, Liu Bo, Zheng Shengda, Zang Jiaxin of China Securities Co., Ltd. (SHSE:601066) acted as financial advisors to Huolinhe Opencut Coal Industry Corporation. Jia Xiangming and Feng Pengfei of Zhongzi Law Office acted as legal advisors and Zhong Chibing and Xiao Xiaojun of Baker Tilly China Certified Public Accountants acted as accountants to Huolinhe Opencut Coal Industry Corporation. Huolinhe Opencut Coal Industry Corporation Limited of Inner Mongolia (SZSE:002128) completed the acquisition of 51% stake in Inner Mongolia Huomei-Hongjun Aluminium & Electricity Co., Ltd. from SPIC Mengdong Energy Group Co., Ltd. on May 17, 2019.