Sunbird Yacht Co., Ltd. (SZSE:300123) signed an agreement to acquire 97.38% stake in Chengdu Yaguang Electronics Co., Ltd. from a group of shareholders for CNY 3.3 billion on January 26, 2017. TDG Holding Co., Ltd will transfer 20.73 million shares of Chengdu Yaguang Electronics Co., Ltd amounting to 14.57% stake. Sunbird Yacht Co., Ltd will issue 258.1 million shares at CNY 12.95 per share as consideration. In related deal, Sunbird Yacht Co., Ltd. announced a private placement of CNY 1.2 billion. Post completion, Chengdu Yaguang Electronics Co., Ltd. will operate as a subsidiary of Sunbird Yacht Co., Ltd. As on September 30, 2016, Chengdu Yaguang Electronics Co., Ltd. reported total assets of CNY 1.7 billion and net assets of CNY 592.2 million.

The transaction is subject to approval from China Securities Regulatory Commission. On January 26, 2017, the Board of Directors of Sunbird Yacht Co., Ltd. and TDG Holding Co., Ltd approved the deal. The deal is also approved by respective internal decision-making bodies of the transaction counterparties and the State Administration of Science, Technology and Industry for National Defense. As of February 20, 2017, shareholders of TDG Holding Co., Ltd. and Sunbird Yacht Co., Ltd. approved the deal. On July 19, 2017, Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission conditionally approved the transaction. On September 18, 2017, the transaction was approved by China Securities Regulatory Commission. Western Securities Co., Ltd. (SZSE:002673) acted as financial advisor, King & Wood Mallesons acted as legal advisor and Pan-China Certified Public Accountants LLP acted as accountant to Sunbird Yacht Co., Ltd.