Aeolus Tyre Co., Ltd. (SHSE:600469) agreed to acquire the remaining 90% stake in Prometeon Tyre Group S.r.l from Pirelli & C. S.p.A. and China Cinda (HK) Holdings Company Limited on April 12, 2017. As consideration, Aeolus Tyre Co., Ltd. will issue 274.19 million and 200.37 million shares to Pirelli & C. S.p.A. and China Cinda (HK) Holdings Company Limited respectively. High Grade(HK) Investment Management Limited committed to a lock up period of 36 months since issuance date. The period will extend another 12 months if Aeolus' stock has a price lower than issuance price for 20 consecutive days since issuance. TP Industrial Holding S.p.A committed to a lock up period of 36 months since issuance date. The period will extend another 6 months if the Aeolus' stock has a price lower than issuance price for 20 consecutive days since issuance. In a related transaction, Aeolus Tyre Co., Ltd agreed to acquire Guilin Beili Tyre Co., Ltd. and land and properties of Qingdao Yellow Sea Rubber. The transactions have a combined value of CNY 5.78 billion. Post completion, Aeolus Tyre Co., Ltd. will be renamed to Prometeon Tyre Group. For the year ended December 31, 2016, Prometeon Tyre Group S.r.l had total assets of CNY 1.25 billion, net liabilities of CNY 361.24 million, net loss of CNY 1.03 billion and revenue of CNY 1.53 billion.

The transaction is subject to SASAC's filing of the target assets' assessment reports, SASAC's approval, Aeolus Tyre's shareholders' approval, National Development and Reform Commission's filing of the Aeolus Tyre's foreign investment, China Securities Regulatory Commission's approval and others. The transaction received the approval of the internal authorities of the sellers, SASAC's pre-approval and the Board of Aeolus Tyre Co., Ltd. Guotai Junan Securities Co.,Ltd. (SHSE:601211) served as a financial advisor to Aeolus Tyre Co., Ltd.

Aeolus Tyre Co., Ltd. (SHSE:600469) cancelled the acquisition of remaining 90% stake in Prometeon Tyre Group S.r.l from Pirelli & C. S.p.A. and China Cinda (HK) Holdings Company Limited on January 4, 2018.