Asset acquisition process of state-owned companies

Legal analysis: define the motivation and purpose of the acquisition, determine the acquisition strategy, form an acquisition team, select acquisition consultants, find and determine the acquisition target, invite legal and tax consultants and shareholders of the target company to contact and make a letter of intent, determine the business integration plan of the target company after the acquisition, conduct due diligence and draft the acquisition agreement.

Legal basis: Interim Measures for the Administration of the Transfer of State-owned Property Rights of Enterprises

Article 5 The transfer of state-owned property rights of enterprises can be conducted by auction, bidding, agreement transfer and other means as stipulated by national laws and administrative regulations.

Article 6 The ownership of the transferred state-owned property rights of enterprises is clear. State-owned property rights of enterprises with unclear ownership relationship or disputed ownership shall not be transferred. The transfer of state-owned property rights of enterprises with security interests shall conform to the relevant provisions of the Security Law of People's Republic of China (PRC).