Hengli Petrochemical Co., Ltd. (SHSE:600346) 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. signed the agreement on assets acquisition by shares issuance to acquire Hengli Petrochemical (Dalian) Refining Co., Ltd. from Hengneng Investment (Dalian) Co., Ltd. and Hengfeng Investment (Dalian) Co., Ltd. on January 24, 2017. In a related transaction, Hengli Petrochemical Co., Ltd. (SHSE:600346) agreed to acquire Hengli Investment (Dalian) Co., Ltd from Hengneng Investment (Dalian) Co., Ltd. and Fan Hongwei on January 20, 2017. As a part of the consideration, Hengli Petrochemical Co., Ltd. will issue 1.68 billion shares at a 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 with a total issuance of 1.67 billion shares for both the transactions. In another related transaction, Hengli Petrochemical will raise support funds for project operations through placement of 565.14 million shares for an amount of CNY 11.5 billion. For the year ended December 2016, Hengli Petrochemical (Dalian) Refining Co., Ltd. reported total assets of CNY 3.52 billion, net assets of 2.9 million, operating loss 1.06 million and net loss of CNY 1.06 million. The transaction is subject to shareholders approval of Hengli Petrochemical Co., Ltd., CSRC approval, 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. As on May 2, 2017, transaction has been approved by the shareholders of Hengli Petrochemical Co., Ltd. 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. Merger, Acquisition, and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission did not approve the transaction on September 15, 2017. On October 25, 2017, Hengli Petrochemical announced to continue working on its restructuring plan to buy petrochemical assets after securities regulator's rejection. On December 14, 2017, CSRC held the 71st working meeting of 2017 and 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.