Zhongfu Information Inc. (SZSE:300659) entered into an agreement to acquire Wuhan Jian Tong Information Technology Co., Ltd. from Huang Jian, Ding Guorong, Gao Feng, Fan Bing, Luo Shali and Ding Chunlong for approximately CNY 950 million on March 28, 2018. Under the terms of the transaction, Zhongfu Information Inc. will pay CNY 237.5 million cash and will issue 20.7 million shares at CNY 34.4 per share as consideration. Huang Jian, Ding Guorong, Gao Feng, Fan Bing, Luo Shali and Ding Chunlong will transfer 54%, 31%, 6%, 5%, 3%, and 1% stake through this transaction. The cash consideration will be financed through a private placement of CNY 505 million. On April 23, 2018, the terms of the transaction were amended. Zhongfu Information Inc. will now pay CNY 313.5 million in cash and will issue 18.5 million shares as consideration. Zhongfu Information Inc. will raise CNY 583.2 million through private placement to finance the cash consideration. As of October 27, 2018, it was decided that Ding Chunlong will not sell his stake. As such, Zhongfu Information Inc. will acquire 99% stake in Wuhan Jian Tong Information Technology Co., Ltd. from Huang Jian, Ding Guorong, Gao Feng, Fan Bing and Luo Shali. The consideration shall comprise of cash consideration of CNY 310.37 million and the rest in shares. Huang Jian, Ding Guorong, Gao Feng, Fan Bing and Luo Shali will be getting a combination of CNY 169.29 million in cash and 16.1 million in shares, CNY 97.19 million in cash and 9.24 million shares, CNY 18.81 million in cash and 1.79 million shares, CNY 15.68 million in cash and 1.49 million shares and CNY 9.4 million in cash and 0.89 million shares respectively. Zhongfu Information intends to issue shares toward no more than 5 qualified specific investors to raise gross proceeds of no more than CNY 580.11 million out of CNY 310.37 million will be used to pay the cash portion. As of May 7, 2019, deal terms were revised pursuant to which Zhongfu Information Inc. will issue 26.7 million shares at issue price CNY 21.3 per share. For the year ended December 31, 2017, Wuhan Jian Tong Information Technology Co., Ltd. reported total assets of CNY 123.2 million, net assets of CNY 67.4 million, revenue of CNY 89.8 million, and operating profit of CNY 56.03 million. The transaction is subject to approval from the shareholders’ meeting of Zhongfu Information Inc. to be held on April 24, 2018, approval from the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission (CSRC), and the CSRC. The transaction was approved by the 18th session of the 4th directorate meeting of Zhongfu Information Inc. on March 28, 2018. The transaction was approved by the shareholders of Wuhan Jian Tong Information Technology Co., Ltd. on March 28, 2018. On April 23, 2018, the amendment to the transaction was approved by the 21st meeting of the 4th directorate of Zhongfu Information Inc. On May 9, 2018, deal has been approved by the shareholders of Zhongfu Information Inc. Wuhan Jian Tong Information Technology Co., Ltd.’s shareholders’ meeting on October 11, 2018 reviewed and approved the proposal on adjustments in Zhongfu Information’s shares issuance and cash payment. Pursuant to authorization of 2018 2nd extraordinary general meeting, Zhongfu Information’s 26th session of the 4th directorate meeting and 17th session of the 4th supervisory board meeting on October 26, 2018 reviewed and approved the revised proposal. On December 19, 2018, Mergers and Acquisitions and Recombination Committee of CSRC rejected the transaction. On January 8, 2019, the transaction was approved by the 29th meeting of the 4th directorate and 20th meeting of 4th Board of supervisors of Zhongfu Information Inc. On April 15, 2019, the transaction was approved by the 32nd meeting of the 4th Board of Directors and 22nd meeting of the 4th Board of Supervisors of Zhongfu Information Inc. On April 25, 2019, the transaction was approved by the 2018 Annual General Meeting of Shareholders of Zhongfu Information Inc. On April 28, 2019 and on August 9, 2019, China Securities Regulatory Commission approved the acquisition. Feng Henian, Zhao Jinsong, Du Huimin, Miao Zheng, and Wang Tengfei of Minsheng Securities Co., Ltd. acted as financial advisors, Wang Ling, Wang Jianping, Song Yanyan, and Sun Ji of Beijing King & Wood Mallesons Law Firm acted as legal advisors and Liang Chun, Ye Jinfu, and Wang Zhun of Da Hua Certified Public Accountants (Special General Partnership) acted as accountants to Zhongfu Information Inc. Jiang Jianying, Xiong Yan, and Li Ning of Zhongshui Zhiyuan Assets Appraisal Co., Ltd. acted as appraisers to Zhongfu Information Inc. Zhongfu Information Inc. (SZSE:300659) cancelled the acquisition of Wuhan Jian Tong Information Technology Co., Ltd. from Huang Jian, Ding Guorong, Gao Feng, Fan Bing, Luo Shali and Ding Chunlong on September 30, 2019. The Board of Directors of Zhongfu Information Inc. approved the cancellation. The cancellation still needs to be approved by shareholders of Zhongfu Information Inc.