Yankuang Energy Group Company Limited (SEHK:1171) entered into an equity transfer agreement to acquire 51% stake in Shandong Lineng Luxi Mine Industry Co., Ltd. from Xinwen Mining Group Co.,Ltd, Longkou Mining Group Co., Ltd., Zibo Mining Group Co.,Ltd., Feicheng Feikuang Coal Industry Co., Ltd. and Linyi Mining Group Co.Ltd for CNY 18.3 billion on April 28, 2023. The consideration shall be paid in cash as 30% of the actual consideration (i.e. approximately RMB5.496 billion) to be paid in one lump sum within five working days after the agreement becomes effective; 30% of the actual consideration (i.e. approximately RMB5.496 billion) to be paid in one lump sum within five working days after the First Closing Date or July 31, 2023, whichever is later; and 40% of the actual consideration (i.e. approximately RMB7.328 billion) to be paid 12 months from the effective date of the agreement. In a related transaction, Yankuang Energy Group Company Limited (SEHK:1171) also entered into an equity transfer agreement to acquire 51% stake in Yankuang Xinjiang Energy & Chemical Co., Ltd from Xinwen Mining Group Co., Ltd for CNY 8.1 billion on April 28, 2023. As at March 31, 2023, Shandong Lineng Luxi Mine Industry Co., Ltd reported total assets of CNY 47.1 billion and net assets of CNY 11.96 billion.

The transaction is subject to approval of the authorized state-owned assets regulatory agencies or their authorized units, each of the vendors completes its internal procedures to approve the transfer of the equity interests and Yankuang Energy Group obtains approval for the transfer of the equity interests from its competent decision-making authorities such as board meeting and shareholders? meeting. The transaction has been reviewed and approved at the twenty-ninth meeting of the eighth board of directors of Yankuang Energy Group Company Limited. An Independent Board Committee, comprising all the independent non-executive Directors, has been established to advise the Independent Shareholders in respect of the acquisitions. The acquisition is expected to close before July 31, 2023. Donvex Capital Limited acted as independent financial advisor to Yankuang Energy Group Company Limited.

Yankuang Energy Group Company Limited (SEHK:1171) completed the acquisition of 51% stake in Shandong Lineng Luxi Mine Industry Co., Ltd. from Xinwen Mining Group Co.,Ltd, Longkou Mining Group Co., Ltd., Zibo Mining Group Co.,Ltd., Feicheng Feikuang Coal Industry Co., Ltd. and Linyi Mining Group Co.Ltd on September 30, 2023.