Zhejiang Henglin Chair Industry CO., LTD. (SHSE:603661) agreed to acquire an additional 52.6% stake in ZheJiang Yongyu Home Furnishings Co., Ltd. from group of sellers on March 11, 2022. Henglin Home Furnishings Co.,Ltd entered into an agreement to acquire additional 52.6% stake in ZheJiang Yongyu Home Furnishings Co., Ltd. from group of sellers for approximately CNY 530 million on October 27, 2022. Under the terms, Zhejiang Henglin will pay the consideration in new shares to be issued at not less than CNY 40.97 per share. As per October 27, 2022, Henglin Home Furnishings Co.,Ltd terminated the previous method of paying consideration from shares and changed to paying cash. As part of the transaction, Zhejiang Henglin will acquire Zhejiang Yongyu HomeÆs approximately 52.6% stake from Chen Yongxing, Zhu Xiaofen, Zhu Chuanhong, Xia Lie, Chen Qixiao, Xu Zhihuan, Zhu Yafei, Feng Junjie, Hu Xiping, Anji Anyu Enterprise Management Partnership Enterprise (Limited Partnership). Prior to completion, Chen Yongxing hold 42.94% stake, Zhejiang Henglin hold 42.13% stake, Zhu Xiaofen hold 2.52% stake, Anji Anyu Enterprise Management hold 2.66% stake, Xia Lie hold 0.59% stake, Chen Qixiao hold 0.54% stake, Xu Zhihuan 0.49% stake, Zhu Yafei hold 0.42% stake, Feng Junjie hold 0.16% stake, Hu Xiping hold 0.11% stake and other shareholders hold the remaining 5.28% stake in ZheJiang Yongyu Home. After the acquisition, Zhejiang Henglin Chair will hold approximately 94.72% stake in ZheJiang Yongyu Home. Zhejiang Henglin Chair will raise supporting funds of not more than 100% of the acquisitionÆs price by issuing not more than 30% of present total share capital to not more than 35 investors to be priced at not less than 80% of the average price in the 20 trading days before the pricing reference date, and the proceeds will be used to pay the intermediary fees, other fees, invest in Zhejiang Yongyu HomeÆs projects under construction, supplement Zhejiang Henglin Chair and Zhejiang Yongyu HomeÆs working capitals, and repay debt, wherein the supplementing of Zhejiang Henglin Chair and Zhejiang Yongyu HomeÆs working capitals and repayment of debt will be not more than 25% of the acquisitionÆs price or not more than 50% of the supporting funds.
The transaction have obtained, SellersÆ Internal Decision-Making InstitutionsÆ approval, board and Supervisory Board and shareholders approvals of Zhejiang Henglin Chair, and remains subject to Zhejiang Henglin Chair's DirectorateÆs approval of the official transaction and shareholdersÆ approval, The CSRCÆs approval and other necessary approvals. As on October 27, 2022, Henglin Home's board of directors reviewed and approved the transaction.
Henglin Home Furnishings Co.,Ltd (SHSE:603661) completed the acquisition of additional 52.6% stake in ZheJiang Yongyu Home Furnishings Co., Ltd. from group of sellers on November 3, 2022.