Shanghai Yunda Express Co., Ltd. agreed to acquire Ningbo Xinhai Electric Co.,Ltd. (SZSE:002120) in a reverse merger transaction on July 1, 2016. The agreement involves an asset swap and share issue. Under the terms, Ningbo Xinhai Electric will acquire 100% of Shanghai Yunda by issuing new shares to Shanghai Yunda’s shareholders pursuant to which Ningbo Xinhai will own 70% of Shanghai Yunda. Ningbo Xinhai Electric will issue 863.4 million shares. On June 30, 2016, the Board of Ningbo Xinhai Electric approved the transaction. The swap-out asset price is CNY 674 million the swap-in asset price is CNY 17.76 billion. The difference in prices is CNY 17.1 billion. The shares to be issued is 863.37 million shares. On July 29, 2016, the workers congress approve the transaction. On September 6, 2016, shareholders of Ningbo Xinhai Electric approved the transaction. On November 8, 2016, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission approved the transaction. The transaction was approved by China Securities Regulatory Commission on December 14, 2016. CITIC Securities Company Limited acted as financial advisor, Tian Yuan Law Firm acted as legal advisor and Grant Thornton China acted as accountant for Ningbo Xinhai Electric. Shanghai Yunda Express Co., Ltd. completed the acquisition of Ningbo Xinhai Electric Co.,Ltd. (SZSE:002120) in a reverse merger transaction on December 19, 2016.