Shenzhen Inovance Technology Co.,Ltd (SZSE:300124) entered into an agreement to acquire Shanghai BST Electric Co., Ltd. from Zhao Jinrong, Wang Jun, and Zhu Xiaodi for CNY 2.7 billion on April 2, 2019. Under the terms of the transaction, Shenzhen Inovance Technology will pay CNY 1.27 billion in cash and will issue 56.19 million shares as consideration. Zhao Jinrong, Wang Jun, and Zhu Xiaodi will transfer 84%, 8%, and 8% stake respectively. Under the terms of the transaction revised on July 11, 2019, Shenzhen Inovance will pay for 51% stake by cash payment and 49% stake by stock consideration. Shenzhen Inovance Technology will pay CNY 1.27 billion in cash and the total shares to be issued revised from 56.19 million shares to 56.72 million shares where the issue revised from CNY 21.69 per share to CNY 21.49 per share. On July 4, 2019, Shenzhen Inovance paid the first installment comprising 30% of the total payment in cash. In a related transaction, Shenzhen Inovance Technology will raise CNY 320 million through a private placement.

For the year ended December 31, 2018, Shanghai BST Electric Co., Ltd. reported total assets of CNY 1.3 billion, net assets of CNY 544.8 million, revenue of CNY 2.4 billion, and net profit of CNY 235.2 million. The transaction is subject to second directorate and shareholders' approval of Shenzhen Inovance Technology, approval from the China Securities Regulatory Commission, and other necessary approvals. The transaction is subject to approval from the Anti-monopoly Bureau of the State Administration for Market Regulation. On April 2, 2019, the transaction was approved by the 14th Meeting of the 4th Directorate of Shenzhen Inovance Technology. The transaction has been approved by the shareholders' meeting of Shanghai BST Electric as of April 4, 2019. On June 28, 2019, Shenzhen Inovance received the approval from the Anti-monopoly Bureau of the State Administration for Market Regulation. On July 9, 2019, Shenzhen Inovance completed the acquisition of 51% stake in Shanghai BST Electric. Li Zhiwen, Chen Xuanqing, Zhang Hongyu, Lin Jianhui, Luo Fei, Cen Zhefeng and Du Pengcheng of Shenwan Hongyuan Securities Underwriting Sponsor Co., Ltd. acted as financial advisor to Shenzhen Inovance Technology. You Xiao, Liu Qingli and Wang Hongjuan of AllBright Law Offices acted as legal advisors while Xie Hui and Li Binhua of BDO China SHU LUN PAN Certified Public Accountants LLP acted as accountant to Shenzhen Inovance Technology respectively.

Shenzhen Inovance Technology Co.,Ltd (SZSE:300124) completed the acquisition of Shanghai BST Electric Co., Ltd. from Zhao Jinrong, Wang Jun, and Zhu Xiaodi on November 1, 2019. On October 28, 2019, China Securities Regulatory Commission approved the transaction.