Anhui Sierte Fertilizer industry LTD. ,company (SZSE:002538) agreed to acquire the remaining 60% stake in Guizhou Lufa Industry Co., Ltd. from Liang Hongge, Liang Shaorong and Liang Difeng for approximately CNY 760 million on January 7, 2021. After deducting the CNY 197 million payable by Liang Hongge, Liang Shaorong and Liang Difeng to Guizhou Lufa Industry Co., Ltd., Anhui Sierte shall pay Liang Hongge, Liang Shaorong and Liang Difeng a total of CNY 560.5 million. Under the terms of the transaction, Anhui will pay an initial CNY 56.05 million or 10% of the deal value within 5 working days from the effective date of this agreement, then within 5 working days after the completion of the industrial and commercial registration of the transfer of all the equity, an additional payment of 50% of the total equity transfer price of CNY 560.5 million which amounts to CNY 280 million and lastly within 5 working days after the sellers assists Guizhou Lufa to complete the following matters, Anhui shall pay 15% of the total equity transfer price of CNY 560.5 million, that is CNY 80 million. The transaction will be funded from Anhui's own funds and bank loans. Before purchase, Anhui holds 40% of Guizhou Lufa while Liang Hongge holds 58.18%, Liang Shaorong holds 1.5% and Liang Difeng holds 0.32% stake. Upon completion of the acquisition, Anhui will hold 100% of Guizhou Lufa Industry Co., Ltd. Guizhou Lufa reported total assets of approximately CNY 960 million and net assets of approximately CNY 400 million in the year ending on August 31, 2020. The deal is subject to the approval of shareholders of Anhui and was already approved by its Board of Directors.