Shanghai Zhixin Electric Co., Ltd. (SHSE:600517) agreed to acquire 73.49% stake in Yingda International Trust Co., Ltd. and 96.67% stake in Yingda Securities Co., Ltd. from a group of shareholders for CNY 19.03 billion on March 29, 2019. As of September 24, 2019, Shanghai Zhixin Electric Co., Ltd. shall issue 3.96 billion shares as consideration. Payment in the acquisition will be made in shares. At present, asset auditing and evaluation procedures have not been completed. As a result, transactional price and the number of shares to be issued as payment will be decided upon when said procedures are completed. Lock up period for the shares will be 36 months since issuance date in the case of Yingda International Holding Group Co., Ltd., China Power Finance Co., Ltd., State Grid Shanghai Municipal Electric Power Company, State Grid Xin Yuan Company Limited and Shenzhen Guoneng International Trading Co., Ltd. In the case of Jinan Energy Investment Co., Ltd., Xiangcai Securities Co., Ltd. and Shenzhen State-owned Duty Free Commodity (Group) Co., Ltd. lock up period will be 12 months. In a related transaction, Shanghai Zhixin Electric Co. intends to raise matching funds in a non-public offering of shares directed at not more than 10 investors. The number of issued shares shall not exceed 20% of the total share capital of Shanghai Zhixin Electric Co. before the issuance. The proceeds shall not exceed 100% of the transactional price of the related acquisition. The proceeds will be used to increase the capital of Yingda Securities Co., Ltd, pay the transaction taxes and intermediary fees, and supplement Shanghai Zhixin Electric Co.’s working capital. Among them, the proportion used to supplement working capital will not exceed 25% of the transaction price, or 50% of the total amount of funds raised. The transaction is subject to approval from the CSRC, China Insurance Regulatory Commission and the SASAC. The transaction has been approved by the State Grid Corporation in principle and has been reviewed and approved at the 30th meeting of the sixth board of directors of Shanghai Zhixin Electric Co. The transaction is still pending approval from Beijing Banking Regulatory Commission for the change of the equity of Yingda International Trust Co., Ltd., China Securities Regulatory Commission for the change of equity of Yingda Securities Co., Ltd. and shareholders of Shanghai Zhixin Electric Co., Ltd. As of October 15, 2019, State-owned Assets Supervision and Administration Commission of the State Council approved the transaction. On December 11, 2019, the China Banking and Insurance Regulatory Commission, Beijing Supervision Bureau approved the transfer of a 73.49% stake in Yingda International Trust Co., Ltd. On December 25, 2019, China Securities Regulatory Commission approved the transaction. As of December 28, 2019, the transaction plan has been approved at the sixth meeting of the seventh directorate of the Shanghai Zhixin Electric. Examination and approval procedures still to be fulfilled in this transaction. As reported on February 6, 2020, China Securities Regulatory Commission approved the issuance of consideration shares. As of February 10, 2020 Shanghai Zhixin Electric Co., Ltd. (SHSE:600517) completed the acquisition of 96.67% stake in Yingda Securities Co., Ltd. from a group of shareholders. Yu Honggang, Bai Gang, Zhao Fengbin, Zhang Guanyu, Liu Lei, Lu Jincai, Chen Shaofeng, Chen Lumeng and Yan Siyu of China Securities Co., Ltd. acted as financial advisors to Shanghai Zhixin Electric. Jiao Fugang, Song Yanyan and Gao Yimin of King & Wood Mallesons, China acted as legal advisors while Chi Wenzhou, Ren Dejun, Ding Qixin and Lu Yonghong of Baker Tilly China Certified Public Accountants acted as accountant to Shanghai Zhixin Electric. Liu Chen and Han Xiaowei of China United Assets Appraisal Group Co., Ltd. acted as asset evaluation agent to Shanghai Zhixin Electric.