China Merchants Shekou Industrial Zone Holdings Co., Ltd. (SZSE:001979) entered into an agreement to acquire 22.4% stake in AVIC SUNDA Holding Company Limited (SZSE:000043) from AVIC International Holdings Limited (SEHK:161) for CNY 1.3 billion on April 26, 2019. Under the terms of the transaction, approximately 150 million A shares will be acquired. The consideration is subject to adjustment. 30% of the consideration, being the security deposit, shall be transferred to the designated bank account of AVIC International Holdings Limited within 5 working days after the execution of the agreement, it will be automatically treated as part of the consideration at the same time of receipt of the remaining consideration by AVIC International Holdings Limited and the remaining 70% of the consideration shall be transferred to the designated bank account of AVIC International Holdings Limited within 10 working days after the agreement having becoming effective. As of June 6, 2019, the consideration of CNY 8.95 per share was adjusted to CNY 8.65 per share.

The transaction is subject to approval by regulatory authorities of China Merchants and AVIC International and from relevant supervising authority of State-owned Assets Supervision and Administration Commission, China Securities Depository and Clearing Co., Ltd. Shenzhen Branch and shareholders of AVIC International Holdings Limited. As of July 25, 2019, AVIC SUNDA Holding Company Limited received the approval from the State-owned Assets Supervision and Administration Commission of the state council for the transaction. On August 23, 2019, the shareholders of AVIC International Holdings Limited approved the transaction. On August 23, 2019, the transaction is approved by Board of Directors of AVIC SUNDA Holding Company Limited. The transaction is expected to be completed within twelve months from the end of current interim reporting period which is June 30, 2019.