Zhongshan Broad-Ocean Motor Co., Ltd. (SZSE:002249) agreed to acquire Shanghai Edrive Co., Ltd. from a group of sellers for CNY 3.5 billion in cash and stock on June 2, 2015. Under the terms of the deal, Zhongshan Broad-Ocean Motor Co., Ltd. will pay CNY 799.3 million in cash and will issue 433.49 million shares at CNY 6.34 per share. The asset acquisition agreement was signed on June 3, 2015. As part of the agreement, Shanghai Annaida Industrial Co., Ltd. will sell 11.34% stake and will receive 48.41 million shares, Ningbo Jianzhi Investment Management Partnership (LP) will sell 8.58% stake and will receive 39.53 million shares, Shanghai Zhongke Yineng New Technology Co., Ltd. will sell 7.56% stake and will receive 32.27 million shares Shenzhen Zhicheng Dongyuan Investment Partnership (LP) will sell 5.48% stake and will receive 25.32 million shares, Tibet Tianying Investment Co., Ltd. will sell 3.02% stake and will receive 13.93 million shares, Ningbo Linshiyuan Investment Center (LP) will sell 1.74% stake and will receive 8.01 million shares, Ningbo Zhuoyu Investment Management Partnership (LP) will sell 0.55% stake and will receive 2.52 million shares, Ningbo Yunsheng Co., Ltd. will sell 15.12% stake and will receive 64.55 million shares, Shanghai Sheng'An Neng Industrial Co., Ltd. will sell 35.28% stake and will receive 150.64 million shares and Ningbo Yunsheng Investment Co., Ltd. will sell 11.34% stake and will receive 48.41 million shares. Also, Zhongshan Broad-Ocean Motor Co., Ltd. will issue shares through a private placement to raise supporting financing, with part of the funds raised to be used for the cash payment part of the transaction. Zhongshan Broad-Ocean Motor will raise up to CNY 2.9 billion in total through placement.

Shanghai Edrive Co., Ltd. recorded total assets of CNY 743.29 million, net assets of CNY 308.07 million, revenue of CNY 601.61 million, operating profit of CNY 34.41 million and net profit of CNY 66.65 million for the year ended December 31, 2014. The transaction is subject to the approval of Zhongshan Broad-Ocean Motor's shareholder approval, approval of China Securities Regulatory Commission, and approval from the competent commerce departments on the concentration of business operations. On June 2, 2015, the Board of Directors of Zhongshan Broad-Ocean Motor Co., Ltd. approved the acquisition. The shareholders of Shanghai Edrive Co., Ltd., including, Shanghai Sheng'An Neng Industrial Co., Ltd., Ningbo Yunsheng Investment Co., Ltd., Shanghai Annaida Industrial Co., Ltd., Beijing E-power Co., Ltd., Tibet Tianying Investment Co., Ltd. approved the transaction. On June 2, 2015, the Board of Directors of Ningbo Yunsheng Co., Ltd. approved the transaction. On August 11, 2015, the shareholders of Zhongshan Broad-Ocean Motor approved the transaction. On November 26, 2015, the transaction obtained the approval document issued by the China Securities Regulatory Commission which approved the acquisition. On December 7, 2015, the transaction obtained the approval issued by the Ministry of Commerce of the People's Republic of China Anti-monopoly Bureau. Huatai United Securities Co., Ltd. and China Galaxy Securities Co., Ltd. acted as financial advisors for Zhongshan Broad-Ocean Motor Co., Ltd. Jingtian & Gongcheng Law Firm (Beijing) acted as legal advisor while Pan-China Certified Public Accountants and ShineWing Certified Public Accountants acted as accountants for Zhongshan Broad.

Zhongshan Broad-Ocean Motor Co., Ltd. (SZSE:002249) completed the acquisition of Shanghai Edrive Co., Ltd. from a group of sellers on January 6, 2016.