Shanxi Coking Coal Energy Group Co. ,Ltd. (SZSE:000983) agreed to acquire 49% stake in Shanxi Huajin Mingzhu Coal Industry Co.,Ltd. from Li Jinyu and Gao Jianping for CNY 1.3 billion on January 17, 2022. The cash payment ratio is 15% of the transaction price, and the share payment ratio is 85% of the transaction price. The deal is subject to approval from China Securities Regulatory Commission, Shanxi Coking Coal Energy Group Co. ,Ltd. (SZSE:000983) shareholders and board. As of January 18, 2022 Shanxi Coking Coal Energy Group Co. ,Ltd. (SZSE:000983) board approved the deal. As of March 10, 2022, Shanxi Coal Group Company Limited, the holding shareholder of Shanxi Coking Coal Energy Group Co., Ltd., approved the transaction. As of July 8, 2022, 15th Meeting of the 8th Directorate and the 14th Meeting of the 8th Supervisory Board of Shanxi Coking Coal Energy Group has approved replacing Ping An Securities Co., Ltd., and hiring CITIC Securities Co., Ltd. as independent financial advisor for its acquisition of assets. As of December 19, 2022, the transaction is approved by China Securities Regulatory Commission.
As of October 2022, this transaction has been approved by Shanxi State Operation Company, and the appraisal report of the target assets has been filed by Shanxi State Operation Company, therefore there is no need to report to Shanxi SASAC for approval or filing. The approval and filing procedures for state-owned assets that have been performed for this transaction are in compliance with the relevant regulations on state-owned assets. The issue price of the issuance of shares and the payment of cash to purchase assets is adjusted to CNY 5.41 per share. As of December 9, 2022, The 49% equity of Mingzhu Coal Industry was adjusted from CNY 616.2009 million to CNY 442.6325 million. Li Jinyu will sell stake in CNY 225.8329 million and Gao Jianping will sell stake in CNY 216.7996 million. Li Jinyu and Gao Jianping promised that the non-publicly issued shares of Shanxi Coking Coal Energy not be transferred in any way within 12 months from the date of completion of the issuance. As of December 29, 2022, the Shanxi Coking Coal Energy received Approval of Shanxi Coking Coal Energy Group Co., Ltd.'s acquisition issued by the CSRC.


Ping An Securities Co., Ltd. acted as financial advisor, BDO China SHU LUN PAN Certified Public Accountants LLP acted as accountant and Guantao Law Firm acted as legal advisor to Shanxi Coking Coal Energy. CITIC Securities Company Limited (SHSE:600030) acted as independent financial advisor to Shanxi Coking Coal Energy Group Co.,Ltd.