Hengli Petrochemical Co., Ltd. (SHSE:600346) agreed to acquire Hengli Investment (Dalian) Co., Ltd from Hengneng Investment (Dalian) Co., Ltd. and Fan Hongwei for CNY 8.3 billion on January 20, 2017. Hengli Petrochemical Co., Ltd. signed the agreement on assets acquisition by shares issuance to acquire Hengli Investment (Dalian) Co., Ltd from Hengneng Investment (Dalian) Co., Ltd. and Fan Hongwei on January 24, 2017. Under the transaction, Hengneng Investment (Dalian) Co., Ltd. will sell 49% stake and Fan Hongwei will sell 51% stake in Hengli Investment (Dalian) Co., Ltd. As a part of the consideration, Hengli Petrochemical Co., Ltd will issue 1.68 billion shares at CNY 6.85 per share for both the transactions. As per the amendment received on August 25, 2017, issue price for the shares to be issued as consideration is revised to CNY 6.70 per share. In a related transaction, Hengli Petrochemical Co., Ltd. agreed to acquire Hengli Petrochemical (Dalian) Refining Co., Ltd. from Hengneng Investment (Dalian) Co., Ltd. and Hengfeng Investment (Dalian) Co., Ltd. for CNY 3.2 billion on January 20, 2017. Hengli Petrochemical Co., Ltd. is to raise supporting funds of not more than CNY 11.5 billion by issuing not more than 565.14 million shares in a private placement to fund the acquisition. For the year ended December 2016, Hengli Investment (Dalian) Co., Ltd reported revenues of CNY 29.1 billion, total assets of CNY 34.1 billion, net assets of CNY 7.5 billion, operating loss of CNY 517.1 million and net loss of CNY 507.9 million. The transaction is subject to approval of the shareholders of Hengli Petrochemical Co., Ltd., China Securities Regulatory Commission, re-approval by the Directorate of Hengli Petrochemical Co., Ltd. and Ministry of Commerce of the People’s Republic of China Anti-monopoly Bureau on the concentration of business operators’ matters. The transaction was approved by the shareholders of Hengli Investment (Dalian) Co., Ltd. and Hengfeng Investment (Dalian) Co., Ltd.’s shareholder Fan Hongwei on January 20, 2017. The transaction has been approved by the Board of Directors of Hengli Petrochemical Co., Ltd. The transaction has been approved by the shareholders of Hengli Petrochemical Co., Ltd. on May 2, 2017. On May 4, 2017, the Ministry of Commerce of the People's Republic of China Anti-monopoly Bureau issued the “Notice on no Implementation of Further Review” on the matter. As of September 15, 2017, the transaction did not receive approval from the Merger, Acquisition, and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission in its 55th work meeting of 2017. On October 25, 2017, Hengli Petrochemical announced to continue working on its restructuring plan to buy petrochemical assets after securities regulator's rejection. As on December 14, 2017, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission approved the transaction. Huafu Securities Co., Ltd. acted as the financial advisor, Beijing Liang Gao Law Firm acted as the legal advisor and Ruihua Certified Public Accountants, LLP acted as the accountant to Hengli Petrochemical Co., Ltd.