Dalian Zeus Entertainment Co., Ltd. (SZSE:002354) signed agreement to acquire 93.54% stake in Beijing Huanxiang Yueyou Network Technology Co., Ltd. from a consortium of sellers for CNY 3.7 billion on June 1, 2016. In a related transaction, Dalian Zeus Entertainment Co., Ltd. (SZSE:002354) agreed to acquire 96.36% stake in Beijing Herun Detang Culture & Media Co., Ltd. from a consortium of sellers for approximately CNY 590 million on June 1, 2016. Dalian Zeus Entertainment will settle the consideration by a combination of cash and shares to the sellers except Zhou Maoyuan, Shao Ze, Everbright Capital and Jiahe Wanxing, who will be receiving only cash consideration totaling CNY 180 million in exchange of shares of Beijing Huanxiang Yueyou. 25.98 million shares will be issued at CNY 70.63 per share along with cash consideration of CNY 1.8 billion. Dalian Zeus Entertainment Co. will raise supporting funds of not more than CNY 2.56 billion by issuing not more than 36.25 million shares at CNY 70.63 per share to not more than 10 specific investors to fund the acquisition. As of December 31, 2015, Beijing Huanxiang Yueyou Network Technology Co., reported total assets of CNY 789.04 million, net assets of CNY 740.46 million, revenue of CNY 362.14 million, operating profit of CNY 78.98 million and net profit of CNY 78.43 million. The transaction is subject to approval of the shareholders of Dalian Zeus Entertainment Co., CSRC and China’s business departments’ approval. On June 1, 2016, Dalian Zeus Entertainment Co. held the 27th meeting of the 3rd directorate, and approved the transaction. On June 21, 2016, Dalian Zeus Entertainment Co., Ltd's shareholders in their 6th extraordinary general meeting of 2016 approved the transaction. Everbright Securities Company Limited (SHSE:601788) and China Securities Co., Ltd. acted as the financial advisors, DeHeng Law Offices acted as the legal advisor and Beijing Xinghua Certified Public Accountants acted as the accountant to Dalian Zeus Entertainment Co. As of September 29, 2016, the terms of the transaction were amended. Dalian Zeus Entertainment will now pay 1.7 billion in cash and will issue 24.14 million shares as consideration. Dalian Zeus Entertainment will now issue 31.94 million shares at CNY 65.38 per share for gross proceeds of CNY 2.09 billion as supporting funds. The amendment was approved by the 32nd session of the 3rd directorate of Dalian Zeus Entertainment. As of October 10, 2016, the transaction was approved by the shareholders of Dalian Zeus Entertainment. As of October 14, 2016, the transaction was approved by the 34th session of the 3rd directorate of Dalian Zeus Entertainment. The transaction was approved by China Securities Regulatory Commission on December 15, 2016. Dalian Zeus Entertainment Co., Ltd. (SZSE:002354) completed the acquisition of 93.54% stake in Beijing Huanxiang Yueyou Network Technology Co., Ltd. from a consortium of sellers on January 20, 2017.