Shanxi Coking Co.,Ltd. (SHSE:600740) agreed to acquire 49% stake in Shanxi Zhongmei Huajin Energy Co., Ltd. from Shanxi Jiao Hua Group Co., Ltd. for CNY 4.9 billion on March 22, 2016. Under the terms of the transaction, Shanxi Coking Co., Ltd. will pay CNY 600 million in cash and will issue approximately 690 million shares as consideration for the acquisition. As of October 27, 2016, the consideration shares are revised to 601 million shares. Under the revised terms, Shanxi Coking Co., Ltd. will issue 601 million shares. As on December 7, 2016, Shanxi Coking Co., Ltd. will issue 666.5 million new shares and pay CNY 600 in cash as the revised consideration. China Coal Energy Company Limited (HKSE:1898) gave up its pre-emptive right for 49% stake in Shanxi Zhongmei Huajin Energy. The transaction will be funded by CNY 1.2 billion raised by issuing of 163.5 million shares by Shanxi Coking Co., Ltd. As on September 27, 2017, Shanxi Coking Co., Ltd. will issue 786.4 million new shares and pay CNY 600 million in cash as the revised consideration. The transaction will be funded by CNY 650 million raised by issuing new shares. On December 25, 2017, the terms of the transaction were amended. Shanxi Coking Co., Ltd. will now pay CNY 4.89 billion as consideration.

Shanxi Zhongmei Huajin Energy reported total assets of CNY 14.2 billion, net assets of CNY 6.8 billion, revenue of CNY 3.7 billion, operating profit of CNY 1.1 billion and net profit of CNY 800.4 million as of December 31, 2015. The transaction is subject to secondary Board approval the of Shanxi Coking Co., Ltd., approval from State-owned Assets Supervision and Administration Commission department, approval from shareholders of Shanxi Coking Co., Ltd. and approval from China Securities Regulatory Commission. The deal was approved by Shanxi Coking's Board of Directors on March 22, 2016. As of October 27, 2016, the deal was approved in-principle by Shanxi Jiao Hua Group Co., Ltd., Shanxi Coking Coal Group Co., Ltd, the parent of Shanxi Coking Co., Ltd., and State-owned Assets Supervision and Administration Commission of Shanxi Provincial Government. As on December 6, 2016, the Board of Shanxi Jiao Hua Group Co., Ltd. approved the transaction. As of December 23, 2016, the transaction was approved by the shareholders of Shanxi Coking Co., Ltd. As of June 21, 2017, the transaction was rejected by the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of China Securities Regulatory Commission. As of January 26, 2018, the transaction was approved by the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of China Securities Regulatory Commission. As of February 9, 2018, the transaction was approved by China Securities Regulatory Commission.

Chen Gongyan, Wang Jianlong, Liu Weibin, Yan Tianyi, Ju Xuan, Zhang Liwen, and Ma Feng at China Galaxy Securities Company Limited (SEHK:6881) acted as a financial advisor, Yuan Jianmin, Sun Shuiquan, and Hao Enlei at Shanxi Hengyi Law Office acted as a legal advisor, and Grant Thornton China acted as an accountant for Shanxi Coking Co., Ltd. Li Dan, Li Yanyu, and Qi Fei at PricewaterhouseCoopers Zhong Tian LLP acted as an accountant for Shanxi Zhongmei Huajin Energy Co., Ltd. Chen Yanjun and Gao Zhaoying at Beijing Zhonghua China Assets Appraisal Co., Ltd acted as asset appraisal institution, No Jianning, Wei Sanbao, and Zhai Chunfang at Shanxi Rulin Asset Evaluation Office (general partnership) acted as mining rights assessment institution, and Xi Shengjun and Fan Yanhua at Shanxi Guoshengyuan Land Valuation Co., Ltd acted as land valuation agency for Shanxi Coking Co.,Ltd.