Shuifa Energas Gas Co., Ltd. (SHSE:603318) agreed to acquire remaining 40.21% stake in Ordos Shuifa Gas Co., Ltd. from Shandong Shuifa Holding Group Co., Ltd. on June 2, 2022. The consideration will be paid in form of Shuifa Energas Gas shares. Upon completion of the transaction, Ordos Shuifa Gas will become a wholly owned subsidiary of Shuifa Energas Gas. The transaction has been reviewed and approved at the seventh meeting of the fourth board of directors and the seventh meeting of the fourth board of supervisors of Shuifa Energas Gas. This transaction still needs to be reviewed and approved by Shandong SASAC and issue a formal approval document and the evaluation results of the subject assets of this transaction still need to be filed with the competent state-owned assets department, convene a general meeting of shareholders to review and approve the transaction, approved by the China Securities Regulatory Commission and other possible approvals or approvals required by relevant laws and regulations. As on October 10, 2022, Shuifa Energas Gas Co., Ltd. shareholders have approved the transaction. Ordos Shuifa Gas has reported total assets of CNY 1,591.706 million, revenue of CNY 855.1038 million, net income of CNY 33.0415 million and total common equity of CNY 969.3175 million in December 31, 2021. As of June 29, 2022, The deal is approved by board of Shandong Shuifa Holding Group. This transaction already gained the pre-approval of the State-owned Assets Supervision and Administration Commission of Shandong. As of November 4, 2022, the transaction consideration for the 40.21% stake in Ordos Shuifa is determined to be CNY 457.6896 million. Based on the issue price of CNY 6.06 per share, the number of shares to be issued to Shuifa Holdings this time is 75.52634 million shares. Zhongtai Securities Co., Ltd. (SHSE:600918) acted as independent financial advisor to Shuifa Energas.
As on November 19, 2022, The transaction was approved by China Securities Regulatory Commission.