Poly Culture Group Corporation Limited (SEHK:3636) agreed to acquire 35% stake in Beijing Poly International Auction Co. Ltd. from Li Da, Zhao Xu, and Li Yizhou for approximately CNY 630 million on April 18, 2017. On May 8, 2017, the equity transfer agreement was entered. Poly Culture Group Corporation Limited will acquire 17% equity interests held by Li Da at a consideration of approximately CNY 303.2 million, 14% equity interests held by Zhao Xu at a consideration of approximately CNY 249.7 million, and 4% equity interests held by Li Yizhou at a consideration of approximately CNY 71.3 million. Poly Culture Group Corporation Limited will pay 60% after achieving certain deal condition and remaining 40% stake after achieving all deal conditions. In related transaction, Poly Culture Hong Kong Limited intends to acquire remaining 31.5% stake in Poly Auction (Hong Kong) Limited from Zhao Xu, Zhang Yixiu, and New Moon Investment Limited for approximately CNY 280 million. Poly Culture Group Corporation Limited will issue 59.21 million shares at HKD 18.3 (CNY 16.19) per share and use proceeds for the acquisition. For the year ended December 31, 2016, Beijing Poly International Auction Co. Ltd. had turnover of CNY 7.1 billion, operating income of CNY 512 million, total assets of CNY 2.08 billion, net profit of CNY 120 million, and net assets of CNY 510 million. The transaction is subject to government approvals, third party approvals, and Poly Culture's shareholders’ approval. Board of Directors of Beijing Poly International Auction Co. Ltd and third party approved the transaction. The transaction is also subject to Beijing Auction having completed reshuffling of the Board of Directors and management team based on Poly Culture Group Corporation Limited's choice and completion of the industrial and commercial registration. Annual General Meeting of Poly Culture Group Corporation Limited will be held on June 22, 2017. Special committee was formed for the transaction. The transaction will be earning accretive. Gram Capital Limited acted as financial advisor to Poly Culture Group Corporation Limited. Citic Clsa Capital Markets Ltd acted as Financial advisor for Poly Culture Group Corporation Limited. Poly Culture Group Corporation Limited (SEHK:3636) cancelled of the acquisition of 35% stake in Beijing Poly International Auction Co. Ltd. from Li Da, Zhao Xu, and Li Yizhou on April 18, 2018.