Shenzhen Deren Electronic Co., Ltd. (SZSE:002055) agreed to acquire 60% stake in Liuzhou Shuangfei Auto Electric Appliances Manufacturing Co., Ltd. from Su Jin for approximately CNY 600 million on November 9, 2016. Under the terms of the transaction, Shenzhen Deren Electronic Co., Ltd. will issue 16.6 million shares for CNY 28.88 per share and CNY 120 million in cash. Shenzhen Deren Electronic Co., Ltd. signed an agreement to acquire 60% stake in Liuzhou Shuangfei Auto Electric Appliances Manufacturing Co., Ltd. from Su Jin on November 10, 2016. On June 2, 2017, the deal terms revised. CNY 120 million is payable in cash but Shenzhen Deren Electronic Co., Ltd. will now issue 16.63 million shares at CNY 28.86 per share. Under the lock-up period, the consideration shares must not be transferred within 12 months after the completion of the equity registration date. Shenzhen Deren Electronic Co., Ltd. will finance at most CNY 439.2 million for project construction, cash payment and trading expenses. On June 2, 2017, it was announced that CNY 380.3 million will be raised to fund the transaction. For the year ended December 31, 2015, Liuzhou Shuangfei Auto Electric Appliances Manufacturing Co., Ltd. reported total assets of CNY 969.1 million, revenues of CNY 1.3 billion, operating profit of CNY 128.6 million, net income of CNY 108.3 million and net assets of CNY 536.4 million. The transaction is subject to approvals from antimonopoly examination of undertaking concentration by the Ministry of Commerce, shareholders of Shenzhen Deren Electronic Co., Ltd. and China Securities Regulatory Commission. The Board of Directors of Shenzhen Deren Electronic Co., Ltd. approved the deal. On November 9, 2016, the shareholders of Liuzhou Shuangfei Auto Electric Appliances Manufacturing Co., Ltd. approved the deal. On March 29, 2017, the transaction was approved by the Merger, Acquisition and Reorganization Examination Committee of the Listed Company of China Securities Regulatory Commission. The transaction has been approved by the China Securities Regulatory Commission on July 3, 2017. Jianghai Securities Co., Ltd. acted as financial advisor, DeHeng Law Offices acted as legal advisor and Ruihua Certified Public Accountants, LLP acted as accountant for Shenzhen Deren Electronic Co., Ltd. Shenzhen Deren Electronic Co., Ltd. (SZSE:002055) completed the acquisition of 60% stake in Liuzhou Shuangfei Auto Electric Appliances Manufacturing Co., Ltd. from Su Jin on July 27, 2017.