Shanghai Baosteel Packaging Co., Ltd. (SHSE:601968) intends to acquire 50% stake in Hebei Baosteel Can Making North, Wuhan Baosteel Packing, Foshan Baosteel Can Making and Harbin Baosteel from a group of sellers on October 24, 2019. Shanghai Baosteel Packaging will acquire 30% stake in Hebei Baosteel Can Making North Co., Ltd., Wuhan Baosteel Packing Co., Ltd., Foshan Baosteel Can Making Co., Ltd. and Harbin Baosteel Can Making Co., Ltd. from China Baowu Steel Group Corporation Limited. Shanghai Baosteel Packaging will also acquire 20% stake in Hebei Baosteel Can Making North Co., Ltd., Wuhan Baosteel Packing Co., Ltd., Foshan Baosteel Can Making Co., Ltd. and Harbin Baosteel Can Making Co., Ltd. from Sanxia Gold Stone(Shenzhen)Equity Investment Fund Partnership (L.P.), Anhui Industrial M&A Fund Partnership Enterprise (Limited Partnership), a fund managed by Anhui Xin'an Investment Partnership Enterprise (Limited Partnership), Anhui Jiaokong Gold Stone M&A Fund Partnership Enterprise (Limited Partnership), Beijing Gold Stone Hongrui Equity Investment Fund Partnership Enterprise (Limited Partnership), a fund manage by Gold Stone Investment Co., Ltd. The consideration will be paid at an issue price of CNY 4.01 per share. As of July 23, 2020, Shanghai Baosteel Packaging Co., Ltd will acquire 30% stake in Hebei Baosteel Can Making North, 30% of Wuhan Baosteel Packing Co., Ltd, 30% of Foshan Baosteel Can Making Co., Ltd and 30% of Harbin Baosteel Can Making Co., Ltd. from China Baowu Steel Group Corporation Limited and 17.51% stake in Hebei Can, 17.51% in Wuhan Packaging, 17.51% in Foshan Can and 17.51% in Harbin Can from Three Gorges Jinshi (Wuhan) Equity Investment Fund Partnership Enterprise (Limited Partnership), Anhui Industrial M&A Fund Partnership Enterprise (Limited Partnership) and Anhui Jiaokong Gold Stone M&A Fund Partnership Enterprise (Limited Partnership). Under the terms, the consideration is paid through issuance of 295.28 million shares of Shanghai Baosteel Packaging Co., Ltd. The lock up period for Baowu Steel is 36 months since the date of listing of the present shares. If, within 6 months after the issuer's listing, the closing price of the shares is lower than issuance price for 20 consecutive trading days or if trading price is lower than issuance price after 6 month from listing, lock-up period will be automatically extended for another 6 months. The lock up period for Sanxia Gold Stone, Anhui Industry Mergers, Anhui Jiaokong and Beijing Gold Stone Hongrui is 12 months since the date of listing of the present shares. The lock up period is 36 months if by the time they received the new issued shares and the continually owning underlying assets period is less than 12 months. As of December 31, 2018, Hebei Baosteel Can Making North/Wuhan Baosteel Packing/Foshan Baosteel Can Making/ Harbin Baosteel reported total assets of CNY 1.94 billion, total common equity of CNY 897.20 million, revenue of CNY 1.81 billion and net income of CNY 18.25 million. This transaction needs to be formally approved by the State-owned Assets Supervision and Administration Commission of the State Council; The formal plan of this transaction needs to be approved by the shareholders' meeting of the listed company; The transaction needs to be approved by the China Securities Regulatory Commission. The transaction was resolved and approved by the board of director of Shanghai Baosteel Packaging on the 26th meeting of the 5th directorate. The formal plan for the transaction has been reviewed and approved at the 34th meeting of the fifth board of directors of the listed company. The target company has held a shareholder meeting and passed a resolution to approve the transaction. As on August 14, 2020, this transaction was approved in First Extraordinary General Meeting of Shanghai Baosteel Packaging Shareholders in 2020. As of October 21, 2020, trading of shares of Shanghai Baosteel Packaging Co Ltd has been halted due to pending regulatory review for the transaction. As of October 22, 2020, The M&A and Restructuring Committee believes that the Shanghai Baosteel Packaging disclosure of the transaction counterparty’s final investor does not comply with the relevant standards for restructuring, the information disclosure is incomplete, and does not comply with the relevant provisions and hence China Securities Regulatory Commission did not approve the plan involving Shanghai Baosteel Packaging Co., Ltd for issuing shares to China Baowu Steel Group and others to purchase assets. Shanghai Baosteel Packaging Board of Directors will make a resolution on whether to modify this plan within 10 days from the date of receipt of the decision and perform its information disclosure obligations in a timely manner. As of December 2, 2020, China Securities Regulatory Commission has approved the transaction. China International Capital Corporation Limited, HwaBao Securities Co., Ltd and CITIC Securities Company Limited acted as financial advisors to Shanghai Baosteel Packaging Co., Ltd. KPMG Huazhen Certified Public Accountants and Fangda Partners acted as Accountant and legal advisor, respectively, to Shanghai Baosteel Packaging company in the transaction. Shanghai Baosteel Packaging Co., Ltd. (SHSE:601968) completed the acquisition of 47.51% stake in Hebei Baosteel Can Making North, Wuhan Baosteel Packing, Foshan Baosteel Can Making and Harbin Baosteel from a group of sellers on February 26, 2021. Post completion, Shanghai Baosteel Packaging Co., Ltd. holds 97.51% stake in Hebei Baosteel Can Making North, Wuhan Baosteel Packing, Foshan Baosteel Can Making and Harbin Baosteel.