Zhengzhou Coal Mining Machinery Group Co., Ltd. (SEHK:564) entered into equity transfer agreement to acquire 63% stake in ASIMCO Shuanghuan Piston Ring (Yizheng) Co., Ltd. from Axle ATL Cayman Limited for approximately CNY 450 million on March 24, 2016. The consideration will be paid in cash. In related transactions, Zhengzhou Coal Mining Machinery acquired ASIMCO NVH Technologies Co., Ltd, CACG LTD. I, ASIMCO International Casting Co., Ltd., 63% stake in Asimco Camshaft (yizheng) Co., Ltd and 70% stake in ASIMCO Foundry (Yizheng) Co., Ltd. The deal will be funded by CNY 550 million placing arrangement. For the year ended December 31, 2015, ASIMCO Shuanghuan reported profit before tax of CNY 70.036 million, profit after tax of CNY 59.465 million, total assets of CNY 729.73 million, total liabilities of CNY 369 million, operating revenue of CNY 477.55 million, operating profit of CNY 67.48 million and net asset value of CNY 360.728 million. Most of the core managements with expertise on automotive components will remain working at ASIMCO Shuanghuan. The transaction is subject to approval from the commerce authorities, anti-trust clearance, approval from the State Administration of Foreign Exchange or relevant local authorities of the PRC, China Securities Regulatory Commission approval, approval from shareholders of Zhengzhou Coal Mining Machinery, approval from the State-owned Asset Supervision and Administration Commission, filling with Henan Province Development and Reform Commission and waiver of right of first refusal or consent right by other shareholders. The Board of Directors of Axle ATL Cayman approved the transaction on March 24, 2016. An independent Board Committee of Zhengzhou Coal Mining Machinery Group has been established to consider the deal. The Board of Zhengzhou Coal Mining Machinery Group Co recommended the shareholders to approve the deal. The general meeting of shareholders of Zhengzhou Coal Mining Machinery Group Co will be held on June 13, 2016 to consider the approval of the deal. As of June 6, 2016, the transaction received approval from SASAC. As of June 13, 2016, Zhengzhou Coal Mining Machinery’s shareholders approved the transaction. Zhengzhou received no further inspection notice" from anti-monopoly bureau under ministry of Commerce of PRC on September 19, 2016. The transaction further requires the approval from China securities regulatory commission. The long stop date for the transaction is December 31, 2016. As of November 23, 2016, the transaction has been approved by the Merger and Reorganization Audit Committee of Listed Companies of China securities regulatory commission. China International Capital Corporation Limited (SEHK:3908) acted as financial advisor, Deloitte Touche Tohmatsu Certified Public Accountants LLP and PricewaterhouseCoopers Zhong Tian LLP acted as accountants, Zhong Lun Law Firm acted as legal advisor, Computershare Hong Kong Investor Services Limited acted as registrar and China United Assets Appraisal Group Company Limited acted as appraiser to Zhengzhou Coal Mining Machinery Group. Zhengzhou Coal Mining Machinery Group Co., Ltd. (SEHK:564) completed the acquisition of 63% stake in ASIMCO Shuanghuan Piston Ring (Yizheng) Co., Ltd. from Axle ATL Cayman Limited on January 9, 2017.