Jiangsu Xiuqiang Glasswork Co., Ltd. agreed to acquire 60% stake in Suzhou Shengfengyuan New Material Technology Co., Ltd. from Liu Lingfeng and SunMedy Inc for CNY 7.2 million.
March 20, 2018
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Jiangsu Xiuqiang Glasswork Co., Ltd. (SZSE:300160) agreed to acquire 60% stake in Suzhou Shengfengyuan New Material Technology Co., Ltd. from Liu Lingfeng and SunMedy Inc for CNY 7.2 million on March 19, 2018. Jiangsu Xiuqiang Glasswork Co., Ltd. will acquire 44.8% stake from Liu Lingfeng for CNY 5.37 million and 15.2% stake from SunMedy Inc. for CNY 1.82 million. A 50% of the transactional price will be paid within 10 days since delivery of underlying equity and another 50% will be paid within 20 days since delivery of underlying equity. In a related transaction, Jiangsu Xiuqiang Glasswork Co., Ltd. will carry out a capital increase of CNY 30.65 million in Suzhou Shengfengyuan New Material Technology Co., Ltd. After the transactions, Jiangsu Xiuqiang Glasswork Co., Ltd. will hold 88% stake in Suzhou Shengfengyuan New Material Technology Co., Ltd. and SunMedy Inc. will hold 12% stake. Jiangsu Xiuqiang Glasswork Co., Ltd. will fund the transaction through the proceeds of CNY 819 million from its public offering.
Suzhou Shengfengyuan New Material Technology Co., Ltd. reported total assets of CNY 2.32 million and owners' equity of CNY 0.32 million as at November 30, 2017. On March 19, 2018, the Board of Jiangsu Xiuqiang Glasswork Co., Ltd. approved the motion regarding reallocating proceeds to acquire a 60% stake in Suzhou Shengfengyuan New Material Technology Co., Ltd. and to perform a capital increase in Suzhou Shengfengyuan New Material Technology Co., Ltd. Jiangsu Xiuqiang Glasswork Co., Ltd. will hold a meeting of the shareholders on April 9, 2018 to discuss the motion regarding reallocating proceeds to acquire a 60% stake in Suzhou Shengfengyuan New Material Technology Co., Ltd. and to later perform a capital increase.
Jiangsu Xiuqiang Glasswork Co., Ltd. is a China-based company principally engaged in the deep processing of glass and operation, management of kindergartens. The Company operates through two main segments. The Deep Processing of Glass segment is mainly involved in the research, development, manufacture and sales of deep processing glass products which include appliance glass, household glass, photovoltaic glass and cover plate glass of display screens. The Operation and Management of Kindergartens segment is mainly involved in the acquisition of kindergartens and provision of integrated solution plans for kindergartens.
Jiangsu Xiuqiang Glasswork Co., Ltd. agreed to acquire 60% stake in Suzhou Shengfengyuan New Material Technology Co., Ltd. from Liu Lingfeng and SunMedy Inc for CNY 7.2 million.