Hangzhou Boiler Group Co., Ltd. agreed to acquire 9.6% in Jolywood Sunwatt Co., Ltd. from Lin Jianwei and Zhang Yuzheng for approximately CNY 740 million.

Hangzhou Boiler Group Co., Ltd. (SZSE:002534) agreed to acquire 9.6% in Jolywood (Suzhou) Sunwatt Co., Ltd. (SZSE:300393) from Lin Jianwei and Zhang Yuzheng for approximately CNY 740 million on August 9, 2020. Lin Jianwei will transfer 45.1 million shares and Zhang Yuzheng will transfer 29.5 million shares at CNY 9.9 per share in cash. The consideration is payable in two installments.

On the day of signing this agreement, CNY 300 million will be paid while the balance with 5 days when the agreement comes into effect. Hangzhou Boiler Group Co., Ltd. will also sign an agreement to acquire another 9.1% in Jolywood (Suzhou) Sunwatt Co., Ltd. Hangzhou Boiler Group Co., Ltd. will finance the transaction through its own funds, self-raised funds, etc. On August 9, 2020, the Board of Directors of Hangzhou Boiler Group Co., Ltd. approved the transaction.

The deal requires further approval from shareholders. CITIC Securities Company Limited (SHSE:600030) acted as financial advisor for Hangzhou Boiler Group Co., Ltd.