Huizhou China Eagle Electronic Technology Inc. (SZSE:002579) agreed to acquire Zhuhai Yisheng Technology Development Co., Ltd. and Zhuhai Topsun Electronic Technology Co., Ltd. from a group of sellers for approximately CNY 270 million on May 23, 2019. Under the terms, Huizhou China Eagle Electronic Technology Inc. will acquire 45% stake in Zhuhai Yisheng Technology Development Co., Ltd. from Hu Ke selling 13.7% stake, Zhang Xuandong selling 9.61% stake, He Bo selling 7.1% stake, Xu Jinghao selling 7.1% stake, Lin Yiming selling 3.06% stake, Fu Ge selling 2.13% stake, Lei Weinong selling 1.61% stake and Han Yugeng selling 0.68% stake and 23.88% stake in Zhuhai Topsun Electronic Technology Co., Ltd from Xindi Company selling 4.9% stake, Haiso Technology Co., Ltd. selling 3.77% stake, Zhongshan Lishun Industrial Co., Ltd. selling 3.4% stake, Apple Base Limited selling 3.4% stake, Jiaxing Xinghe Equity Investment Partnership Enterprise (Limited Partnership) selling 2.24% stake, Topsun Technology (Hong Kong) Limited selling 2.21% stake, Shanghai Jinyu Investment Co., Ltd. selling 1.6% stake, Beijing Zhengda United Investment Co., Ltd. selling 1.42% stake and Fukoku Tokai Co., Ltd. selling 0.94% stake. Pursuant to the restructuring agreement, the transaction price of 45% stake in Zhuhai Yisheng Technology Development Co., Ltd. is CNY 126.74 million, the transaction price of 23.88% stake in Zhuhai Topsun Electronic Technology Co., Ltd. is CNY 143.26 million. The total transaction price is CNY 270 million, wherein 10% of the transaction consideration, i.e. CNY 27 million, shall be paid via issuance of convertible bonds; 78.89% of the transaction consideration, i.e. CNY 213 million, shall be paid via issuance of shares; 11.11% of the transaction consideration, i.e. CNY 30 million, shall be paid in cash. Huizhou China Eagle Electronic Technology Inc. intends to issue 270,000 convertible bonds (preliminary conversion price is CNY 9.97 per share) at a par value of CNY 100 per piece and will issue 21,364,094 common shares to sellers at CNY 9.97 per share to acquire the target assets. Prior to this transaction, the company’s subordinate enterprise Huizhou Zhongjing Electronic Industry Investment Partnership (Limited Partnership) holds 55% stake in Zhuhai Yisheng Technology Development Co., Ltd. and 29.18% stake in Zhuhai Topsun Electronic Technology Co., Ltd., since Zhuhai Yisheng Technology Development Co., Ltd. holds 46.94% stake in Zhuhai Topsun Electronic Technology Co., Ltd., the proportion of Zhuhai Yisheng Technology Development Co., Ltd. and Zhuhai Topsun Electronic Technology Co., Ltd. included in the company’s consolidated scope are both 55.00%. After this transaction, the proportion of Zhuhai Yisheng Technology Development Co., Ltd. and Zhuhai Topsun Electronic Technology Co., Ltd. included in the company’s consolidated scope are both 100%. The company intends to issue convertible corporate bonds to raise supporting funds. On May 22, 2019, Huizhou China Eagle Electronic Technology Inc.'s 7th session of the 4th directorate meeting and approved this transaction. Zhuhai Topsun Electronic Technology Co., Ltd.’s shareholders’ meeting and Zhuhai Yisheng Technology Development Co., Ltd.’s shareholders’ meeting on May 20, 2019 reviewed and approved this transaction. Non-individual sellers of this transaction, namely, Xindi Company, Zhongshan Lishun Industrial Co., Ltd., Apple Base Limited, Jiaxing Xinghe Equity Investment Partnership Enterprise (Limited Partnership), Topsun Technology (Hong Kong) Limited, Shanghai Jinyu Investment Co., Ltd., Beijing Zhengda United Investment Co., Ltd. and Fukoku Tokai Co., Ltd. have approved this transaction in their decision making procedure, seller Haiso Technology Co., Ltd. has convened directorate meeting which approved this transaction. The transaction is conditional upon Haiso Technology Co., Ltd.’s shareholders’ meeting approve proposals related to this transaction, the Huizhou China Eagle Electronic Technology Inc. shareholders’ meeting approve proposals related to this transaction, this transaction obtain the approval of Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission and China Securities Regulatory Commission. As of November 7, 2019, Securities Regulator approved the transaction. Tan Yiming, Guo Houmeng of Everbright Securities Co., Ltd. acted as financial advisors to Huizhou China Eagle Electronic Technology Inc. Zhuang Wei, Hu Yijin of Jun He Law Offices acted as legal advisors to Huizhou China Eagle Electronic Technology Inc. Li Yongli, Zhang Xiao of Pan-China Certified Public Accountants LLP acted as accountants to Huizhou China Eagle Electronic Technology Inc. Huizhou China Eagle Electronic Technology Inc. (SZSE:002579) completed the acquisition of 45% stake in Zhuhai Yisheng Technology Development Co., Ltd. and 23.88% stake in Zhuhai Topsun Electronic Technology Co., Ltd. from a group of sellers on November 20, 2019.