China Building Material Test & Certification Group Co., Ltd. intends to purchase 65% stake in Liaoning Fengtian Testing Technology Co., Ltd. from Yitian Enterprise Management Consulting Partnership (Limited Partnership) and Liaoning Fuhua Glass Co., Ltd. for CNY 58.8 million.
July 30, 2021
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China Building Material Test & Certification Group Co., Ltd. (SHSE:603060) intends to purchase 65% stake in Liaoning Fengtian Testing Technology Co., Ltd. from Yitian Enterprise Management Consulting Partnership (Limited Partnership) and Liaoning Fuhua Glass Co., Ltd. for CNY 58.8 million on June 30, 2021. Under the terms of transaction, China Building Material Test & Certification will acquire 60.45% stake from Yitian Enterprise Management Consulting Partnership and 4.55% stake from Liaoning Fuhua Glass Co., Ltd. The 65% equity transfer payment in Liaoning Fengtian involved in this transaction was paid in three installments, and the payment ratios were respectively 50%, 30% and 20% of the underlying equity transfer price. Among them, the third option transfer price will be used as the margin for the performance commitment, that is, the corresponding margin for 2021, 2022 and 2023 is 6%, 6% and 8% of the underlying equity transfer price respectively. After the completion of this cooperation, Liaoning Fengtian Testing will become a holding subsidiary of China Building Material Test & Certification. For the year ended December 31, 2020, Liaoning Fengtian Testing reported total assets of CNY 60.24 million, net assets of CNY 41.05 million, operating income of CNY 42.65 million and net profit of CNY 10.67 million. The transaction has been reviewed and approved at the fifth meeting of China Building Material Test & Certification's fourth board of directors and does not need to be submitted to the shareholders meeting for deliberation.
China Testing & Certification International Group Co Ltd, formerly China Building Material Test & Certification Group Co Ltd, is a China-based company mainly engaged in inspection and testing business and certification evaluation business. The Company is also engaged in research and development (R&D) and sales of equipment, and extension services. The inspection and testing business mainly includes the inspection fields of construction and decoration materials, construction projects, environmental safety new materials and so on. The certification evaluation business includes mandatory product certification, voluntary product certification, management system certification and others. The extension services mainly include safety production technical services, standardized technical services, capability verification, professional and technical personnel training and others. The R&D and sales of equipment business are engaged in research and sales of special instruments and equipment.
China Building Material Test & Certification Group Co., Ltd. intends to purchase 65% stake in Liaoning Fengtian Testing Technology Co., Ltd. from Yitian Enterprise Management Consulting Partnership (Limited Partnership) and Liaoning Fuhua Glass Co., Ltd. for CNY 58.8 million.