Guangdong Shenglu Telecommunication Tech. Co., Ltd. (SZSE:002446) agreed to acquire Nanjing Hengdian Electronics Co., Ltd. from 34 individuals for approximately CNY 750 million on April 18, 2015. Under the terms, Guangdong Shenglu will pay CNY 52.5 million in cash and issue 24.36 million shares at CNY 28.63 per share. 34 individuals include Yang Zhenfeng, Sun Xiaohang, Lu Ji, Li Yibing, Zhong Wei, Ge Hu, Yang Jie, Huang Linfeng, Gu Xiaojun, Dong Zibing, Qiu Lili, Wang Yinghui, Lou Jinfen, Zhang Tingting, Wang Jun, Yu Yuanyuan, Huang Mingqian, Chu Shuxian, Shen Lei, Pan Shihui, Zhang Wang, Lu Chenguang, Zeng Yunhua, Shi Xiaoxia, Sun Hongyi, Liu Jian, Shao Lijia, Wang Lanxiang, Xu Hui, Xu Hao, Rong Tianxu, Sun Dongrun and Chen Chuang. The purchase consideration will be financed through share placement at most CNY 232.5 million to be financed from private placement. Nanjing Hengdian Electronics Co., Ltd. reported total assets of CNY 123.7 million, stockholders' equity of CNY 60.05 million, revenues of CNY 90.6 million, operating profit of CNY 16.81 million and net profit of CNY 14.32 million as of December 31, 2014.

The transaction requires the approval from the stockholders of Guangdong Shenglu Telecommunication Tech, State Administration of Science, Technology and Industry for National Defense, PRC, and China Securities Regulatory Commission. Board of Directors of Guangdong Shenglu Telecommunication Tech. Co., Ltd. approved the transaction on April 18, 2015. As of July 23, 2015, the transaction has been approved by shareholders of Guangdong Shenglu Telecommunication Tech. Co. On November 9, 2015, Guangdong Shenglu Telecommunication Tech. Co., Ltd. amended the transaction and plan to issue 53.61 million shares and CNY 52.5 million in cash for CNY 1.6 billion. Guangdong Shenglu Telecommunication Tech. Co., Ltd. will issue 20.51 million shares to raise CNY 266.8 million. On November 9, 2015, China Securities Regulatory Commission approved the transaction. China Securities Co., Ltd. acted as financial advisor for Guangdong Shenglu Telecommunication Tech. Co., Ltd. On March 5, 2015, Nanjing Hengdian's shareholders' approved the transaction. On June 12, 2015, State Administration of Science, Technology and Industry for National Defense approved the transaction. Tianhe Law Firm acted as the legal advisor to Guangdong Shenglu Telecommunication Tech Co., Ltd. BDO China Shu Lun Pan Certified Public Accountants LLP acted as the accountant to Guangdong Shenglu Telecommunication Tech Co., Ltd.

Guangdong Shenglu Telecommunication Tech. Co., Ltd. (SZSE:002446) agreed to acquire Nanjing Hengdian Electronics Co., Ltd. from 34 individuals on November 30, 2015.