China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. (SHSE:600764) signed a framework agreement to acquire Shipbuilding Heavy Industry Co., Ltd., Shenyang Liaohai Equipment Co., Ltd., China Shipbuilding Heavy Industry Jierui Technology Holding Co., Ltd., Lianyungang Jari Electronics Co., Ltd., Qingdao Jari Automation Co., Ltd. and China Shipbuilding Yongzhi Electronics Technology Co., Ltd. from China Shipbuilding Industry Corporation and Taixing Yongzhi Electronic Devices Co.,Ltd on July 12, 2018. As of September 14, 2018, China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. agreed to acquire a 100% stake in Shipbuilding Heavy Industry Co., Ltd., a 100% stake in Shenyang Liaohai Equipment Co., Ltd., a 100% stake in China Shipbuilding Heavy Industry Jierui Technology Holding Co., Ltd., a 54.08% stake in Lianyungang Jari Electronics Co., Ltd., a 62.48% stake in Qingdao Jari Automation Co., Ltd., and a 49% stake in China Shipbuilding Yongzhi Electronics Technology Co., Ltd. from a group of shareholders for CNY 6.7 billion. Under the amended terms, few sellers will be paid in only shares while the rest will be paid in both cash and shares. In total, China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. will issue 233.8 million shares at CNY 25.08 per share and CNY 801.3 million in cash as consideration. As of December 22, 2018, the terms were amended. As of April 22, the terms were amended. The consideration for acquisition of 62.48% stake in Qingdao Jari Automation Co., Ltd. and 49.00% stake in China Shipbuilding Yongzhi Electronics Technology Co., Ltd., Taixing will be paid through issuance of shares. For the acquisition of Shipbuilding Heavy Industry Co., Ltd., Shenyang Liaohai Equipment Co., Ltd., China Shipbuilding Heavy Industry Jierui Technology Holding Co., Ltd. and Lianyungang Jari Electronics Co., Ltd., shares and cash will be issued. China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. will issue shares to no more than 10 specific investors to raise supporting funds of no more than CNY 3.2 billion out of which CNY 809.8 million will be used for cash consideration payment. As of December 31, 2017, Csic Haisheng Technology Co., Ltd. reported total assets of CNY 1.7 billion and total revenue of CNY 899 million and operating profit of CNY 188.3 million for the year ended December 31, 2017. As of December 31, 2017, Shenyang Liaohai Equipment Co., Ltd. reported total assets of CNY 853.7 million and total revenue of CNY 393 million and operating profit of CNY 32.3 million for the year ended December 31, 2017. As of December 31, 2017, China Shipbuilding Heavy Industry Jierui Technology Holding Co., Ltd. reported total assets of CNY 2 billion and total revenue of CNY 1.2 billion and operating profit of CNY 174.9 million for the year ended December 31, 2017. As of December 31, 2017, Lianyungang Jari Electronics Co., Ltd. reported total assets of CNY 1.6 billion and total revenue of CNY 989.1 million and operating profit of CNY 176 million for the year ended December 31, 2017. As of December 31, 2017, Qingdao Jari Automation Co., Ltd. reported total assets of CNY 247.9 million and total revenue of CNY 149.1 million and operating profit of CNY 3.5 million for the year ended December 31, 2017. As of December 31, 2017, China Shipbuilding Yongzhi Electronics Technology Co., Ltd. reported total assets of CNY 52.2 million and total revenue of CNY 36.4 million and operating profit of CNY 3.8 million for the year ended December 31, 2017. The transaction is subject to approval of the shareholders of China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd., and approval from the State-owned Assets Supervision and Administration Commission of the State Council and China Securities Regulatory Commission. The transaction was approved by the Board of Directors of China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. in the 35th meeting of 8th directorate on September 14, 2018. The revised terms got approved by the Board of Directors of China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. in the 39th session of the 8th directorate on December 22, 2018. The transaction has fulfilled internal approval procedures of the sellers as of December 22, 2018. As of January 8, 2019, the transaction is approved by State-owned Assets Supervision and Administration Commission of the State Council and shareholders of China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. As on September 19, 2019 securities regulator gives approval for asset acquisition and trading of shares to resume on September 20, 2019. As on November 6, 2019, the securities regulator provided approval to China Marine Information Electronics for the asset acquisition. On February 12, 2019, China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. convened a board of directors to deliberate and approve the “Proposal on Not Adjusting the Issuance Price of the Shares and Paying Cash to Purchase Assets”. The board of directors of China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. decided not to adjust the stock issuance price of the assets purchased in the transaction in accordance with the issue price adjustment mechanism. Wang Ling, Zhu Yexin, Zhang Minghui, Qian Wenrui, Jiang Wenxiang, Zhu Hongyi, Kang Pan, Chen Fengbo, Xu Wenlu, Feng Xinzheng, Yao Yiyu, Hu Zhongjun of CITIC Securities Company Limited (SHSE:600030) acted as financial advisors, Huang Guobao and Huang Na of Jiayuan Law acted as legal advisors and Chen Yongbo and Wang Na of BDO China SHU LUN PAN Certified Public Accountants LLP acted as accountants to China Shipbuilding Industry Group Sea Defense and Information Confrontation Co., Ltd. China Marine Information Electronics Company Limited completed the acquisition of stakes in six companies from a group of shareholders on December 2, 2019. China Marine Information Electronics Company Limited acquired Shipbuilding Heavy Industry Co., Ltd., Shenyang Liaohai Equipment Co., Ltd., China Shipbuilding Heavy Industry Jierui Technology Holding Co., Ltd., 54.08% stake in Lianyungang Jari Electronics Co., Ltd., 62.48% stake in Qingdao Jari Automation Co., Ltd., and 49% stake in China Shipbuilding Yongzhi Electronics Technology Co., Ltd. China Marine Information Electronics Company Limited acquired Qingdao Jari Automation Co., Ltd on November 21, 2019, China Shipbuilding Heavy Industry Jierui Technology Holding Co., Ltd. and China Shipbuilding Yongzhi Electronics Technology Co., Ltd. on November 22, 2019, Lianyungang Jari Electronics Co., Ltd on November 27, 2019, Shenyang Liaohai Equipment Co., Ltd. on November 28, 2019 and Shipbuilding Heavy Industry Co., Ltd on December 2, 2019. Post completion of the acquisition, Shipbuilding Heavy Industry Co., Ltd, Shenyang Liaohai Equipment Co., Ltd., China Shipbuilding Heavy Industry Jierui Technology Holding Co., Ltd. operated as wholly owned subsidiary of China Marine Information Electronics Company Limited. China Marine Information Electronics Company Limited holds 54.08% stake in Lianyungang Jari Electronics Co., Ltd, 62.48% stake in Qingdao Jari Automation Co., Ltd and 49% stake in China Shipbuilding Yongzhi Electronics Technology Co., Ltd. post completion.