Yifeng Pharmacy Chain Co., Ltd. (SHSE:603939) agreed to acquire 86.31% stake in Shijiazhuang Xinxing Chain Pharmacies Co., Ltd. from a group of sellers for CNY 1.4 billion on June 21, 2018. Under the terms of the transaction, Yifeng Pharmacy Chain Co., Ltd. will pay CNY 784.8 million in cash for 48.96% stake and will issue 14.11 million shares at CNY 42.43 per share for 37.35% stake. For the year ending December 31, 2017, Shijiazhuang Xinxing Chain Pharmacies Co., Ltd. reported revenue of CNY 904.9 million, net profit of CNY 45.2 million, total assets of CNY 768.2 million and total equity of CNY 378.3 million. The transaction is subject to approval from China Securities Regulatory Commission (CSRC) and the State Market Supervision and Administration Bureau Anti-Monopoly Bureau. As of June 21, 2018, the transaction was approved by the Board of Directors of Yifeng Pharmacy Chain Co., Ltd., shareholders of Yifeng Pharmacy Chain Co., Ltd., and counterparties’ internal decision-making units. As of July 13, 2018, shareholders of Shijiazhuang Xinxing Chain Pharmacies Co., Ltd. approved the acquisition. As of August 15, 2018, 48.96% stake was transferred to Yifeng Pharmacy. As of October 18, 2018 and on November 1, 2018, the transaction was approved by the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of CSRC. Zhang Youjun, Guo Zhuoran, Zhang Xiaoyong, Luo Hanjun, Chen Shu, Xu Fenglin, Guo Zhuoran, Zhang Xiaoyong, Luo Hanjun, Chen Shu, and Xu Fenglin of CITIC Securities Company Limited acted as financial advisors, Ding Shaobo, Liao Qingyun, Cheng Lin of Hunan Qiyuan Law Firm acted as legal advisors, Hu Shaoxian, Li Jian, and Zhou Ya of Tianjian Certified Public Accountants (Special General Partnership) acted as accountants, and Wang Xiaomin, Fang Ming, and Xu Guoqiang of Shanghai Dongzhou Asset Appraisal Co., Ltd. acted as assets assessment agency to Yifeng Pharmacy Chain Co., Ltd. Li Jian and Zhou Ya of Pan-China Certified Public Accountants LLP acted as accountants to Yifeng Pharmacy Chain Co., Ltd. Yifeng Pharmacy Chain Co., Ltd. (SHSE:603939) completed the acquisition of 86.31% stake in Shijiazhuang Xinxing Chain Pharmacies Co., Ltd. from a group of sellers on November 6, 2018.