Jiangsu Leike Defense Technology Co., Ltd. (SZSE:002413) signed an agreement to acquire Jiangsu HengDa Microwave Technology Development Co., Ltd. from Wu Handong and Wei Maohua for CNY 63.5 million on January 24, 2019. Under the terms of transaction, Jiangsu Leike Defense Technology Co., Ltd. will acquire 60% stake from Wu Handong and 40% stake from Wei Maohua. Jiangsu Leike Defense Technology Co., Ltd. will pay CNY 25 million in cash, CNY 25 million of convertible bonds and 2.3 million shares for acquiring Jiangsu HengDa Microwave Technology Development Co., Ltd. In a related transaction, Jiangsu Leike Defense Technology Co., Ltd. will acquire Xi’an HengDa Microwave Technology Development Co., Ltd. from a group of sellers for approximately CNY 560 million. The cash consideration of the transaction will be funded by CNY 397 million raised by Jiangsu Leike Defense Technology Co., Ltd. For the year ended December 31, 2018, Jiangsu HengDa Microwave Technology Development Co., Ltd. had total assets of CNY 6.6 million, net assets of CNY 5.6 million, revenue of CNY 5.2 million, operating profit of CNY 2.7 million and net profit of CNY 1.7 million. The transaction is subject to a second approval of the Directors of Jiangsu Leike Defense Technology Co., Ltd., approval of National Defense Science and Technology Bureau, China Securities Regulatory Commission and of shareholders of Jiangsu Leike Defense Technology Co., Ltd. On January 24, 2019, the transaction was unanimously approved by the shareholders of Jiangsu HengDa Microwave Technology Development Co., Ltd. and was approved Board of Jiangsu Leike Defense Technology Co., Ltd. On March 12, 2019, the transaction is approved by the State Administration of Science, Technology and Industry for National Defense. On March 22, 2019, the confidential information exemption disclosure and decryption treatment plan for this transaction was approved by the National Defense Science and Technology Bureau. On July 21, 2019, the transaction is approved by Jiangsu Leike Defense Technology Co., Ltd's 6th directorate in its 10th meeting. On August 14, 2019, Jiangsu Leike Defense Technology Co., Ltd. held the second extraordinary shareholders meeting in 2019, deliberating and passing the issuance of shares, convertible bonds and payment of cash to purchase assets and raising matching funds and related party transactions report (draft). On October 10, 2019, Jiangsu Leike Defense Technology Co., Ltd. received the approval from China Securities Regulatory Commission. Du Pengfei, Zhu Licen and Wang Zhiyu of China Securities Co., Ltd. acted as financial advisors, Tang Yong and Wang Yuehua acted as legal advisors and Xu Weidong and Xiao Yi acted as accountants for Jiangsu Leike Defense Technology Co., Ltd.