Maoye Communication and Network Co., Ltd. (SZSE:000889) signed a framework agreement to acquire Beijing Sinowel Information Technology Co., Ltd. from Liu Yingkui, Ningbo Bonded Port Area Jiayu Chunhua Investment Partnership Enterprise (Limited Partnership) and Ningbo Bonded Port Area Jiahui Qiushi Investment Partnership Enterprise (Limited Partnership) for CNY 1.1 billion on June 23, 2017. Maoye Communication and Network Co., Ltd. entered into an agreement to acquire Beijing Sinowel Information Technology Co., Ltd. from Liu Yingkui, Ningbo Bonded Port Area Jiayu Chunhua Investment Partnership Enterprise (Limited Partnership) and Ningbo Bonded Port Area Jiahui Qiushi Investment Partnership Enterprise (Limited Partnership) on October 10, 2017. Under the terms of the transaction, Maoye Communication and Network Co., Ltd. will pay CNY 370 million in cash and will issue 72.22 million shares. On March 27, 2018, Maoye Communication and Network Co., Ltd. agreed to acquire Beijing Sinowel Information Technology Co., Ltd. from Liu Yingkui, Jiayu Chunhua and Jiahui Qiushi for CNY 1.4 billion. Under the revised terms of transaction, Maoye Communication and Network Co., Ltd. will issue 47.2 million new shares to Liu Yingkui for 49% stake and will pay CNY 88.8 million in cash for its 6% stake; Jiayu Chunhua will receive CNY 518 million for 35% stake and CNY 148 million for 10% stake from Jiahui Qiushi. As of August 8, 2018, the deal terms were further revised. Total shares to be issued as consideration to Liu Yingkui got revised from 47.2 million shares to 47.3 million shares. Issue price was revised from CNY 15.37 per share to CNY 15.34 per share. Maoye Communication have completed the part of first tranche CNY 100 million to sellers. There is an extant payment of CNY 10.96 million to be made this payment is still part of the first tranche of payment. Maoye Communication and Network Co., Ltd. will fund the cash consideration by raising supporting funds of not more than CNY 1.1 billion through issuance of shares to not more than 10 investors. Maoye Communication and Network Co., Ltd. will now raise CNY 639 million, and will not be used to fund the transaction. For the year ended December 31, 2016, Beijing Sinowel Information Technology Co., Ltd. reported revenue of CNY 359.1 million, operating profit of CNY 64.9 million and net profit of CNY 55.6 million. As of December 31, 2016, Beijing Sinowel Information Technology Co., Ltd. reported total assets of CNY 225.3 million and net assets of CNY 67.8 million. The transaction is subject to approval from seller’s official, directorate and shareholders of Maoye Communication and Network Co., Ltd., China Securities Regulatory Commission and other necessary approvals. The transaction has been approved by the seller’s internal decision-making institutions and 12th meeting of Maoye Communication and Network Co., Ltd.’s 7th Directorate. As of April 24, 2018, the transaction is approved at 2018 3rd extraordinary general meeting of Maoye Communication and Network. As of May 10, 2018, anti-monopoly bureau of the State Administration for Market Regulation approved the transaction. On June 4, 2018, Beijing Sinowel Information Technology Co., Ltd. received the renewed business license issued by Beijing Administration for Industry and Commerce Shijingshan branch. As on June 6, 2018, transaction has been approved by the shareholders of Maoye Communication and Network Co and 51% stake in Beijing Sinowel Information Technology has been completed. On July 13, 2018, the transaction has been approved from the Merger, Acquisition, and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission in its 35th work meeting of 2018. As of August 8, 2018, China Securities Regulatory Commission approved the transaction. Liu Zhe, He Xiuyin, Cai Yong, Zhang Xin, Zhang Minyan, Kang Haoyut and Qi Yufei of CITIC Securities Co., Ltd. acted as financial advisors, Tang Zhoujun and Li Kefeng of Zhong Lun Law Firm acted as legal advisors and Chu Shiwei, Wang Yushou and Ni Shiming of Huapu Tianjian Certified Public Accountants acted as accountants to Maoye Communication and Network Co., Ltd.