China Merchants Offshore Engineering Investment (ShenZhen) Co., Ltd agreed to acquire 69.8% stake in AVIC Weihai Shipyard Company Limited from AVIC International Holdings Limited (SEHK:161) for approximately CNY 620 million on April 26, 2019. China Merchants Offshore Engineering Investment will acquire 69.8% Stake for CNY 1 and will pay Weihai Shipyard Shareholder’s Loan of approximately CNY 619 million. China Merchants Offshore Engineering Investment (ShenZhen) Co., Ltd will pay 30% of the total consideration within 10 working days. The remaining 70% of the consideration will be paid within 10 working days after getting the approval of the supervising authority of SASAC and on completion of the registration procedure. Upon completion, Weihai Shipyard will cease to be the subsidiary of the AVIC International Holdings Limited. Weihai Shipyard Company Limited reported net liabilities of approximately CNY 1.1 billion and loss after taxation of approximately CNY 471 million in 2018. The transaction is subject to approval of supervising authority of SASAC. As on June 20, 2019, the transaction is no longer subject to the approval by the SASAC. Extraordinary General meeting of shareholders of AVIC International Holdings Limited will held on August 23, 2019. The director including the non-executive directors of AVIC International Holdings Limited recommended the shareholders to vote in favour of the transaction. Aviation Industry Corporation of China, Ltd, the actual controller of AVIC International Holdings Limited, approved transaction on July 8, 2019 and China Merchants Group Limited, the actual controller of China Merchants Offshore Engineering Investment (ShenZhen) Co., Ltd, approved the transaction on July 9, 2019. On August 23, 2019, the shareholders of AVIC International Holdings Limited approved the deal. Hong Kong Registrars Limited acted as registrar to the AVIC International Holdings Limited. China Merchants Offshore Engineering Investment (ShenZhen) Co., Ltd completed the acquisition of 69.8% stake in AVIC Weihai Shipyard Company Limited from AVIC International Holdings Limited (SEHK:161) on September 10, 2019. As of September 10, 2019, all the condition in the agreement has been fulfilled. The registration procedures regarding the transfer of the 69.77% equity interest in Weihai Shipyard and the Weihai Shipyard shareholder’s Loan by the AVIC International Holdings Limited to CMOEI was completed on 28 August 2019 and remaining 70% of consideration of the Weihai Shipyard Disposal to the AVIC International Holdings Limited has been paid by CMOEI on September 10, 2019.