Shandong Sunway Petrochemical Engineering Co.,Ltd (SZSE:002469) entered into an agreement to acquire 82.43% stake in Zibo Nalcohol Chemical Co., Ltd. from a group of 197 individuals for approximately CNY 780 million on April 29, 2020. On June 30, 2020, Shandong Sunway Petrochemical Engineering Co.,Ltd agreed to acquire 72.53% stake in Zibo Nalcohol Chemical Co., Ltd from 172 restructuring counterparties for approximately CNY 660 million. Under the terms, 89.8 million shares will be issued and cash of CNY 350.3 million will be paid to acquire 24.3 million shares of Zibo Nalcohol as a part of the transaction. Under the terms of the acquisition, Shandong Sunway will pay a cash consideration of approximately CNY 310 million for 36.26% stake and will issue 81 million shares at a price of CNY 3.8 per share for 36.26% stake. The final issue amount is subject to the issuance number approved by the China Securities Regulatory Commission. The transaction will be financed by raising supporting funds of not more than CNY 350.4 million by issuing not more than 98.4 million to Shandong Renhe Investment Co., Ltd., who will subscribe with CNY 100 million and Zibo Yingke Jiaren Equity Investment Fund Partnership Enterprise (Limited Partnership), who will subscribe with CNY 250.3 million at CNY 3.56 per share. The company intends to raise matching funds by the non public issuance of shares to Shandong Renhe Investment Co., Ltd. and Zibo Yingke Jiaren Equity Investment Fund Partnership (Limited Partnership). The total amount of supporting funds to be raised this time does not exceed approximately CNY 310 million and it does not exceed 100% of the transaction price of purchasing assets by issuing shares in this transaction. In related transaction, Shandong Sunway Petrochemical Engineering Co.,Ltd acquired 17.37% stake in Zibo Nalcohol Chemical Co., Ltd on May 13, 2020. After the implementation of this reorganization, Shandong Sunway Petrochemical Engineering Co.,Ltd will hold 89.89% of Zibo Nalcohol Chemical Co., Ltd. Zibo Nalcohol reported total assets of CNY 892 million, net assets of CNY 752.9 million, revenues of CNY 1.3 billion, operating profit of CNY 187.9 million, total profit of CNY 187.3 million and net profit of CNY 157.3 million in the year ending on December 31, 2019. The transaction is subject to approval from shareholders of Shandong Sunway, approval by CSRC and second approval of Shandong Sunway's Directorate after Zibo Nalcohol Chemical Assets’ Audit and Assessment Work are completed. The transaction has been approved by the Board of Shandong Sunway on April 29, 2020. As of August 20, 2020, China Securities Regulatory Commission approved the issuance of shares by Shandong Sunway Petrochemical Engineering Co.,Ltd. The issue of shares and the payment of cash to purchase Zibo Nalcohol Chemical Co., Ltd. and the raising of supporting funds are still subject to the approval of the China Securities Regulatory Commission. On June 29, 2020, Shandong Sunway Petrochemical Engineering Co.,Ltd held the second meeting of the fifth directorate in 2020 and approved the transaction. As of October 28, 2020, China Securities Regulatory Commission approved the transaction. The shareholders of Shandong Sunway Petrochemical Engineering Co.,Ltd. approved the transaction on August 10, 2020 and October 29, 2020. Wang Fang of First Capital Investment Banking Co., Ltd. acted as financial advisor, Wang Rui, Jin Ruyue and Chen Jing of AllBright Law Offices acted as legal advisor and Yin Xianfeng and Wang Penglian of Moore Stephens Da Hua acted as accountant to Shandong Sunway in the transaction. Shandong Sunway Petrochemical Engineering Co.,Ltd (SZSE:002469) completed the acquisition of 72.53% stake in Zibo Nalcohol Chemical Co., Ltd from 172 restructuring counterparties on November 18, 2020. As a result, Shandong Sunway owns approximately 89.9% interest in Zibo Nalcohol.