Suzhou Hycan Holdings Co., Ltd. (SZSE:002787) agreed to acquire 93.56% stake in Changzhou Ruijie New Materials Technology Co.,Ltd. from a group of sellers for approximately CNY 380 million on September 8, 2017. The sellers include Wang Weihong, Pan Kai, Shanghai Liansheng Venture Capital Co., Ltd., a fund managed by Atlas Capital, Beijing Tianxing Beidou Investment Management Center (Limited Partnership) and other 140 shareholders. Under the terms of the transaction, Suzhou Hycan Holdings Co., Ltd. will issue 20.33 million shares at CNY 16.66 per share and will pay CNY 38.56 million in cash. Shanghai Liansheng Venture Capital Co., Ltd. and Beijing Tianxing Beidou Investment Management Center (Limited Partnership) will sell 12 million shares and 0.05 million shares and will receive only shares as consideration. The consideration shares will be subject to a lock-up period of 12 months and for a period of 36 months in special cases where the specific counterparty is the controlling shareholder of Suzhou Hycan Holdings Co., Ltd. or Changzhou Ruijie New Materials Technology Co.,Ltd. obtains control over Suzhou Hycan Holdings Co., Ltd. by subscribing for the present shares or when a specific subscriber acquires the present shares it takes less than 12 months to continue to have an interest in the target assets. The cash payment will be done within 30 days since the date of delivery of the underlying equity. On June 6, 2018, the deal terms revised. Suzhou Hycan Holdings Co., Ltd. will acquire 93.5% stake. As consideration, 20.6 million new shares and cash of CNY 38.5 million will be issued. On January 11, 2018, Suzhou Hycan Holdings Co., Ltd. acquired 5.5% stake in Changzhou Ruijie New Materials Technology Co.,Ltd.The cash consideration will be funded through capital raising of CNY 73.5 million. For the year ended December 31, 2016, Changzhou Ruijie New Materials Technology Co.,Ltd. reported revenues of CNY 338.61 million, operating profit of CNY 29.05 million and net profit of CNY 24.54 million. As at December 31, 2016, Changzhou Ruijie New Materials Technology Co.,Ltd. reported total assets of CNY 206.22 million and net assets of CNY 168.96 million. The transaction is subject to approval from shareholders of Suzhou Hycan Holdings Co., Ltd., shareholders of Changzhou Ruijie New Materials Technology Co.,Ltd. and China Securities Regulatory Commission. The transaction was approved by the 24th session of its 2nd directorate meeting of Suzhou Hycan Holdings Co., Ltd. on September 8, 2017. Wang Weihong, Pan Kai, Atlas Capital, Beijing Tianxing Beidou Investment Management Center (Limited Partnership) and other sellers approved the transaction on September 8, 2017. On September 21, 2017, the transaction was approved by the superior unit of Shanghai Liansheng Venture Capital Co., Ltd. On September 29, 2017, the shareholders of Suzhou Hycan Holdings Co., Ltd approved the transaction. On December 29, 2017, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of China Securities Regulatory Commission approved the transaction. On February 1, 2018, Suzhou Hycan Holdings Co., Ltd. received the China Securities Regulatory Commission’s approval. Tan Tao, Zhou Zhuo professional of Sealand Securities Co., Ltd. (SZSE:000750) acted as the financial advisor, Zheng Jianjiang, Zhu Qiang, Lu Jian professionals of Zhong Lun Law Firm acted as the legal advisor, Zhu Zhongwei, Zhao Guoliang professionals of Pan-China Certified Public Accountants LLP and Pan-China Certified Public Accountants LLP acted as accountants to Suzhou Hycan Holdings Co., Ltd.