GF Securities Co., Ltd. (SZSE:000776) entered into agreements to acquire additional 9.5% stake in GF Fund Management Co., Ltd. from Kangmei Pharmaceutical Co., Ltd. (SHSE:600518) for approximately CNY 1.4 billion on January 29, 2019. The consideration is paid in cash. The final transaction consideration will be further determined by negotiation and consensus based on the audit and appraisal results. GF Securities Co., Ltd is required to make a pre-payment of RMB 1.39 billion to Kangmei Pharmaceutical. In a related transaction, GF Securities Co., Ltd will fund the transaction from own funds.

As of September 31, 2018, GF Fund Management Co., Ltd. reported total assets of CNY 8.1 billion and net assets of CNY 5.8 billion. Transaction is subject to the regulatory approval, relevant competent authorities approval and approval of GF Securities Co., Ltd., Kangmei Pharmaceutical Co., Ltd. and GF Fund Management Co., Ltd. from all necessary internal competent authorities/ organizations for the proposed equity transfer. On January 28, 2019, GF Securities 17th session of the 9th directorate meeting reviewed and approved the transaction. Transaction is expected to close within 10 days from the date of fulfillment of all conditions. On October 21, 2019, transaction has been approved by the China Securities Regulatory Commission.