Shandong Daye Co., Ltd. (SHSE:603278) agreed to acquire 4 companies from Eleven company administrators and Shandong Snton Group Co., Ltd. for CNY 1.7 billion on December 18, 2020. The 4 companies include Shandong Snton Steel Cord Co., Ltd., Shandong Snton Machinery Manufacturing Co., Ltd.,Shandong Snton Import and Export Co., Ltd, and Dongying Hwton International Trade. The consideration will be paid cash.

The total investment price of this transaction is initially determined to be CNY 1.7 billion. As the audit, evaluation and due diligence work has not been completed, the final transaction price of the underlying asset of this transaction has not yet been determined. Within five days after the signing of the Agreement, Shandong Daye Co., Ltd. will pay CNY 200 million to the administrator as a reorganization deposit (including the deposit of CNY 5 million paid by the company at the time of registration).

Before March 20, 2021, Shandong Daye Co., Ltd. will pay 17% of the investment price (including restructuring deposit) to the account designated by the administrator. Before June 20, 2021, Shandong Daye Co., Ltd. will pay 17% of the investment price. Before September 20, 2021, Shandong Daye Co., Ltd. will pay 17% of the investment price.

Before April 20, 2022, Shandong Daye Co., Ltd. will pay 49% of the investment price. The company will convene second board of directors meeting to review the formal plan of the restructuring transaction, after the completion of the comprehensive due diligence, audit, and evaluation of the target company involved in this transaction. The transaction is subject to Shandong Daye Co., Ltd. general meeting of shareholders approval and approval of State Administration for Market Regulation.

On December 18, 2020, the company held the third meeting of the fourth board of directors, which reviewed and approved the transaction. As of March 15, 2021, Business Concentration Anti-monopoly approved the transaction. Liu Yuan, Yang Jilin and Xu Juan of Sinolink Securities Co., Ltd. (SHSE:600109) acted as financial advisors, Guo Fangjin and Guo Enying of Beijing DHH Law Firm acted as legal advisors and Lv Jianmu and Diao Naishuang of Zhongxinghua Certified Public Accountants LLP (Special General Partnership) acted as accountant for Shandong..