Jiangsu SOPO Chemical Co. Ltd. (SHSE:600746) agreed to acquire operating assets and liabilities related to acetic acid and derivatives business of Jiangsu Sopo (Group) Co., Ltd. and main operating assets and liabilities of Zhenjiang Sopo Chemical New Development Co., Ltd. for CNY 5.4 billion on December 17, 2018. Jiangsu SOPO Chemical Co. Ltd. signed an agreement to acquire operating assets and liabilities related to acetic acid and derivatives business of Jiangsu Sopo (Group) Co., Ltd. and main operating assets and liabilities of Zhenjiang Sopo Chemical New Development Co., Ltd. for CNY 5.4 billion on January 9, 2019. Under the terms of the transaction, Jiangsu SOPO Chemical Co. Ltd. will pay CNY 200 million in cash and will issue 846.33 million shares to Jiangsu Sopo (Group) Co., Ltd. and will pay CNY 146.8 million in cash to Zhenjiang Sopo Chemical New Development Co., Ltd. As of October 23, 2019, Jiangsu SOPO Chemical Co. Ltd. will pay CNY 150 million cash and will issue 692 million shares to Jiangsu Sopo (Group) Co., Ltd. and will pay CNY 184.9 million in cash to Zhenjiang Sopo Chemical New Development Co., Ltd. The cash consideration will be funded through a private placement of CNY 400 million. The transaction is subject to approval from the State-Owned Assets Supervision and Administration Commission of Jiangsu Provincial Government, approval from the shareholders of Jiangsu SOPO Chemical Co. Ltd., and approval from China Securities Regulatory Commission. On December 17, 2018, the transaction was approved by the Board of Directors of Zhenjiang Sopo Chemical New Development Co., Ltd. and Board of Jiangsu Sopo (Group) Co., Ltd. On January 2, 2019, the transaction was approved by the shareholders of Zhenjiang Sopo Chemical New Development, Jiangsu SOPO Chemical and the shareholders of the State-Owned Assets Supervision and Administration Commission of Zhenjiang City. On January 9, 2019, the transaction was approved by the State-Owned Assets Supervision and Administration Commission of Zhenjiang City and by the Board of Directors of Jiangsu SOPO Chemical Co. Ltd. in 7th meeting of 8th directorate. On January 16, 2019, the transaction was approved by the Jiangsu Provincial State-Owned Assets Supervision and Administration Commission. As of February 2, 2019, shareholders of Jiangsu SOPO Chemical Co. Ltd. approved the transaction. As of May 16, 2019, Merger, Acquisition and Reorganization Examination Committee of the Listed Company of China Securities Regulatory Commission reviewed Jiangsu SOPO Chemical Co., Ltd. acquisition of asset through share issuance and cash payment and based on the review results reorganization was not approved. On September 20, 2019, Jiangsu SOPO Chemical Co. Ltd. held the 12th meeting of the 8th directorate and approved the transaction plan. On September 25, 2019, the Jiangsu SASAC approved the transaction. On November 4, 2019, Merger, Acquisition and Reorganization Examination Committee of the Listed Company of China Securities Regulatory Commission approved the transaction conditionally. The deal was approved by China Securities Regulatory Commission on December 11, 2019. Wu Wei, Jiang Kunjie, and Chen Jia of Huatai United Securities Co., Ltd. acted as financial advisors, Yang Liang and Jiang Cheng of C&T Partners acted as legal advisors, and Min Zhiqiang, Wang Huanxin of Jiangsu Talent CPA Co., Ltd. acted as accountants to Jiangsu SOPO Chemical Co. Ltd.