Guangdong Rongtai Industry Co. Ltd. (SHSE:600589) signed a conditional agreement to acquire Forest Eternal Communication Tech. Co., Ltd. from Gao Dapeng and Xiao Jian for CNY 1.2 billion in cash and stock on August 12, 2015. Guangdong Rongtai Industry Co. Ltd. will pay CNY 360 million in cash and will issue 103.58 million shares for CNY 8.11 per share. Guangdong Rongtai Industry Co. Ltd. will finance the cash portion for the consideration via private placement of shares. Forest Eternal Communication Tech. Co., Ltd. reported total assets of CNY 84.48 million, total owner's equity of CNY 53.53 million, revenue of CNY 154.88 million, operating profit of CNY 42.03 million and net profit of CNY 35.48 million for the year ending December 31, 2014.

The transaction is subject to approval from the shareholders of Guangdong Rongtai Industry Co. Ltd. and approval from the China Securities Regulatory Commission. The transaction was approved by the Board of Guangdong Rongtai Industry Co. Ltd. and shareholders of Forest Eternal Communication Tech. Co., Ltd. on August 12, 2015. The transaction was approved by the shareholders of Guangdong Rongtai Industry on September 15, 2015. As of December 3, 2015, Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission conditionally approved the transaction. On January 6, 2016, Guangdong Rongtai Industry received approval from the China Securities Regulatory Commission. Great Wall Securities Co., Ltd. acted as financial advisor, Goldsun Law Firm acted as legal advisor and GP Certified Public Accountants Co Ltd acted as an accountant for Guangdong Rongtai Industry Co. Ltd.

Guangdong Rongtai Industry Co. Ltd. (SHSE:600589) completed the acquisition of Forest Eternal Communication Tech. Co., Ltd. from Gao Dapeng and Xiao Jian on January 18, 2016.