SF Diamond Co., Ltd. (SZSE:300179) agreed to acquire Yangling Metron New Material Co, Ltd. from a group of seven individual shareholders for CNY 2 billion on December 25, 2016. An agreement was signed on December 30, 2016. To fund the consideration, SF Diamond will raise supporting funds of not more than CNY 922 million by issuing 138.02 million shares at not less than CNY 6.68 per share.

The deal is subject to the second approval of the Board of Directors of SF Diamond after the audit and assessment work are completed, shareholders' approval of SF Diamond and CSRC's approval. The deal was approved by the shareholders of Yangling Metron New Material on December 25, 2016 and by the Board of Directors of SF Diamond on December 30, 2016. GF Securities Co., Ltd. acted as independent financial advisor to SF Diamond Co., Ltd.