Hengxin Mobile Business Co., Ltd. cancelled the acquisition of remaining 91.3% stake in YSTen Technology Co., Ltd. from Wuxi Jiehua Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Xijie Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Yipu Equity Investment Partnership Enterprise (Limited Partnership), Luo Huiling, and Meng Xianmin.
March 03, 2016 at 11:00 pm EST
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Hengxin Mobile Business Co., Ltd. (SZSE:300081) agreed to acquire remaining 91.3% stake in YSTen Technology Co., Ltd. from Wuxi Jiehua Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Xijie Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Yipu Equity Investment Partnership Enterprise (Limited Partnership), Luo Huiling, and Meng Xianmin for approximately CNY 1.2 billion in shares on March 4, 2015. Hengxin Mobile Business Co., Ltd. will issue 45.65 million shares.
Wuxi Xijie Equity Investment Partnership Enterprise (Limited Partnership) will sell 23.72% and will receive 11.86 million shares. Wuxi Yipu Equity Investment Partnership Enterprise (Limited Partnership) will sell 20.45% and will receive 10.23 million shares. Wuxi Jiehua Equity Investment Partnership Enterprise (Limited Partnership) will sell 21.04% and will receive 10.52 million shares. Luo Huiling will sell 13.04% and will receive 6.52 million shares. Meng Xianmin will sell 13.04% and will receive 6.52 million shares. Hengxin Mobile Business Co., Ltd. will issue 12.58 million shares and will receive CNY 270 million supporting funds. In a related transaction, Meng Xianmin agreed to acquire its 13.04% stake in YSTen Technology Co., Ltd. from Xu Changj.
YSTen Technology reported total assets of CNY 230.26 million, total owners' equity of CNY 65.96 million, revenue of CNY 265.94 million, operating loss of CNY 62.64 million and net loss of CNY 54.76 million as of December 31, 2014. Board of Directors of Hengxin Mobile Business Co., Ltd. approved the transaction on March 4, 2015. The transaction is subject to approval of second Board of Directors of Hengxin Mobile Business Co., Ltd, shareholders of Hengxin Mobile Business Co., Ltd, and China Securities Regulatory Commission. On March 4, 2015 and April 9, 2015, YSTen Technology held its shareholders meetings and approved the transaction. As of July 31, 2015, China Securities Regulatory Commission disapproved the transaction.
On April 9, 2015, Hengxin Mobile Business Co., Ltd. signed assets acquisition agreement to acquire remaining 91.3% stake in YSTen Technology Co., Ltd. from Wuxi Jiehua Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Xijie Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Yipu Equity Investment Partnership Enterprise (Limited Partnership), Luo Huiling, and Meng Xianmin and the Board of Directors of Hengxin Mobile Business approved the transaction. Shareholders of Hengxin Mobile Business approved the transaction on April 28, 2015. King & Wood PRC Lawyers acted as legal advisor, BDO China Shu Lun Pan Certified Public Accountants LLP acted as accountant, and Rising Securities Co., Ltd. acted as financial advisor of Hengxin Mobile Business Co., Ltd.
Hengxin Mobile Business Co., Ltd. (SZSE:300081) cancelled the acquisition of remaining 91.3% stake in YSTen Technology Co., Ltd. from Wuxi Jiehua Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Xijie Equity Investment Partnership Enterprise (Limited Partnership), Wuxi Yipu Equity Investment Partnership Enterprise (Limited Partnership), Luo Huiling, and Meng Xianmin on March 4, 2016.
HENGXIN SHAMBALA CULTURE CO.,LTD., formerly HENGXIN MOBILE BUSINESS CO.,LTD., is a China-based company principally engaged in the industries supported by artistic creativity and visual technology. The Company operates through three main segments. The Computer Graphics (CG) and Visual Reality (VR) Content Production segment is mainly involved in the utilization of the Company's own CG and VR virtual reality content creation capabilities to build an image data asset library.The Children Industry Chain Development and Operation segment is mainly involved in the content production of childrenâs intellectual property (IP), channel distribution, derivative product licensing, and operation of the offline theme parks. The Location Based Entertainment (LBE) segment is mainly engaged in the provision of LBE venue design and manufacturing services to customers. Through its subsidiaries, the Company is also engaged in the mobile phone retail business and operator customized end product business.