Shenzhen Megmeet Electrical Co., Ltd. (SZSE:002851) agreed to acquire the remaining 46% stake in Shenzhen Megmeet Control Technology Co., Ltd from a group of sellers for CNY 97.7 million on April 2, 2018. Under the terms, Shenzhen Megmeet Electrical Co., Ltd will pay CNY 95.03 million by issuing 3 million shares at CNY 31.7 per share and CNY 2.71 million in cash. Post acquisition, Shenzhen Megmeet Electrical Co., Ltd will hold 100% stake in Shenzhen Megmeet Control Technology Co., Ltd. In related transactions, Shenzhen Megmeet Electrical Co., Ltd will acquire 34% stake in Zhejiang iKAHE Sanitary Ware Co., Ltd for CNY 334.8 million and 58.7% stake in Shenzhen Megmeet Drive Technology Co.,Ltd for CNY 463.7 million. The cash consideration will be funded by issuance of shares in a private placement to not more than 10 specific investors to raise supporting funds of not more than CNY 30 million. Shenzhen Megmeet Control Technology Co., Ltd reported total assets of CNY 33.1 million, net assets of CNY 29.1 million, revenue of CNY 34.6 million, operating profit of CNY 7.4 million and net profit of CNY 7.4 million for the year ended December 31, 2017. The transaction is subject to the approval from the shareholders of Shenzhen Megmeet Electrical Co., Ltd and approval of China Securities Regulatory Commission. The transaction was approved by the Board of Directors of Shenzhen Megmeet Electrical Co., Ltd at 13th session of the 3rd directorate meeting held on April 2, 2018. On April 24, 2018, the shareholders of Shenzhen Megmeet Electrical Co., Ltd. approved the transaction in the annual general meeting of 2017. As on June 14, 2018, a notice from China Securities Regulatory Commission was received stating that M&A Reorganization Committee Working Conference approved the transaction. Chen Jian, Fang Honghua, Zhong Hao, Wang Yimiao and Han Zhiqiang of Chinalin Securities Co., Ltd acted as financial advisors, Wen Liangjuan and Su Dunyuan of Jiayuan Law acted as legal advisors and Zhang Guihong and Fu Fengping acted of Zhonghui Certified Public Accountants LLP as accountants to Shenzhen Megmeet Electrical Co., Ltd. Shenzhen Megmeet Electrical Co., Ltd. (SZSE:002851) completed the acquisition of the remaining 46% stake in Shenzhen Megmeet Control Technology Co., Ltd from a group of sellers on August 21, 2018.