Shanxi Lanhua Sci-Tech Venture Co. Ltd. (SHSE:600123) signed a framework agreement to acquire 51% stake in Shanxi Lanhua Group Luhe Coal Co., Ltd. from Shanxi Lanhua Group Dongfeng Coal Mine Co., Ltd for approximately CNY 270 million in cash on October 31, 2012. As on April 30, 2012, Shanxi Lanhua Group Luhe Coal Co had total assets of CNY 851 million and net assets of CNY 393 million.

The deal is subject to approval by the shareholders of Shanxi Lanhua Sci-Tech Venture. The transaction has been approved by Board of Directors of Shanxi Lanhua Sci-Tech Venture Co. Ltd. on October 31, 2012.

The shareholders of Shanxi Lanhua Sci-Tech Venture approved the deal on November 22, 2012.