BEIJING CHIEFTAIN CONTROL ENGINEERING TECHNOLOGY CO., LTD. Star Lake Bioscience Co., Inc.Zhaoqing Guangdong (SHSE:600866) signed a Letter of Intent to acquire a 99.22% stake in Ningxia EPPEN Biotech Co.,ltd from a group of sellers for approximately CNY 5.376 billion on March 7, 2022. The transaction price for the asset acquisition target is CNY 5.376 billion, of which, CNY 4.584 billion will be paid by share issuance. Given the asset acquisition issue price of CNY4.97 per share, the number of shares to be issued as payment is 922.453450 million shares.
The cash consideration is CNY 791.6384 million. The consideration will be paid in combination of cash and Star Lake stock. Under the terms, Guangdong Guangxin Holdings Group Ltd. will sell 43.78%, Ningxia Yipin Investment Group Co., Ltd. will sell 24.11%, Foshan Meide Investment Management Ltd. will sell 6.61%, Beijing New Hope Industry Investment Center (L.P.) managed by Beijing Hosen Investment Management, LLP will sell 6.61%, Beijing Chieftain Control Engineering Technology Co., Ltd. (SZSE:300430) will sell 0.85% and other sellers will sell 17.27% stake in Ningxia EPPEN Biotech Co.,ltd. Star Lake will raise supporting funds to fund cash consideration.
The transaction has been approved by the 18th meeting of the 10th board of directors of Star Lake and State-owned Assets Supervision and Administration Commission. The acquisition still needs to be reviewed and approved by Star Lake's general meeting of shareholders, and can be formally implemented after obtaining the review, approval or approval required by relevant laws and regulations. Essence Securities Co., Ltd. acted as financial advisor, Guangdong Hesheng Law Firm acted as legal advisor and ShineWing Certified Public Accountants Co., Ltd. acted as accountant to Star Lake Bioscience Co., Inc.Zhaoqing Guangdong (SHSE:600866).
As of June 21, 2022, the transaction has been approved by the shareholders of Star Lake.
