China Huadian Corporation Ltd. entered into a merger agreement to acquire an additional 37.2% stake in Huadian Fuxin Energy Corporation Limited (SEHK:816) from other domestic shareholders and H shareholders for CNY 7.2 billion on June 1, 2020. Under the terms of the transaction, China Huadian Corporation Ltd. will pay CNY 2.29995 per domestic share and HKD 2.5 (CNY 2.3) per H share. Upon completion, China Huadian Corporation Ltd. will assume all assets, liabilities, interests, businesses, employees, contracts and all other rights and obligations of the Company and the Company will be eventually deregistered. The purchase price will be financed by external and/or intra-group borrowings. The transaction is subject to the satisfaction of a pre-condition: approval by the National Development and Reform Commission, Ministry of Commerce, the State administration of Foreign Exchange and shareholders’ approval of Huadian Fuxin Energy Corporation Limited. The transaction was approved by the Board of Directors of Huadian Fuxin Energy Corporation Limited. The Board has established the Independent Board Committee and will advise the independent shareholders as to: (a) whether the terms of the transaction is fair and reasonable; and (b) whether to vote in favor of the transaction at the EGM and the H shareholders’ class meeting. As of August 21, 2020, the pre-conditions of transaction have been fulfilled e.g. approval by the National Development and Reform Commission, Ministry of Commerce and the State administration of Foreign Exchange. Completion of the Merger is conditional upon the satisfaction (or waiver, as applicable) of the Conditions to implementation. The transaction is expected to close by June 1, 2021. As of June 22, 2020, the transaction is expected to close by June 8, 2021. As of July 21, 2020, Pre-Condition is yet to be fulfilled. As of September 8, 2020, Lakeville Capital Management (investment manager and authorised representative of relevant shareholders) and China International Capital Corporation Hong Kong Securities Limited has given a letter of intent regarding its intention to support the transaction. On September 16, 2020, shareholders of Huadian Fuxin Energy voted in favor of the transaction. As at the same date the Conditions to effectiveness of the merger were fulfilled and Huadian Fuxin Energy Corporation Limited has obtained approval from the stock exchange for withdrawal of the listing of the H shares on the stock exchange. China International Capital Corporation Hong Kong Securities Limited acted as financial advisor to China Huadian Corporation Ltd. Benita Yu and Jing Chen of Slaughter and May acted as legal advisor for China Huadian Corporation Ltd. China Huadian Corporation Ltd. completed the acquisition of an additional 37.2% stake in Huadian Fuxin Energy Corporation Limited (SEHK:816) from other domestic shareholders and H shareholders on September 29, 2020. As of September 29, 2020, all conditions has been fulfilled and transaction becomes unconditional and the listing of H shares of Huadian Fuxin Energy Corporation on the stock exchange has been withdrawn.