Ningbo Tuopu Group Co., Ltd. signed letter of intent to acquire Sichuan Fuduona Auto Parts Co., Ltd. and assets and businesses of Zhejiang Fuduona Auto Parts Co., Ltd. from Deng Dongdong and Pan Hongmei and Zhejiang Fuduona Auto Parts Co., Ltd for approximately CNY 640 million.
July 17, 2017
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Ningbo Tuopu Group Co., Ltd. (SHSE:601689) signed letter of intent to acquire Sichuan Fuduona Auto Parts Co., Ltd. and assets and businesses of Zhejiang Fuduona Auto Parts Co., Ltd. from Deng Dongdong and Pan Hongmei for approximately CNY 530 million on July 14, 2017. Zhejiang Fuduona Auto Parts Co., Ltd will divest its business to a new entity, to be owned by Deng Dongdong and Pan Hongmei. Ningbo Tuopu Group Co., Ltd. (SHSE:601689) entered into an agreement to acquire Sichuan Fuduona Auto Parts Co., Ltd. and Zhejiang Jiali Auto Parts Co., Ltd. from Deng Dongdong and Pan Hongmei for approximately CNY 640 million on October 18, 2017. Ningbo Tuopu Group Co., Ltd will use for the acquisition. The business of Zhejiang Fuduona Auto Parts Co., Ltd has been transferred to an entity Zhejiang Jiali Auto Parts Co., Ltd and Deng Dongdong and Pan Hongmei respectively holds 60% and 40% stakes in each of Sichuan Fuduona Auto Parts Co., Ltd. and Zhejiang Jiali Auto Parts Co., Ltd.
The consideration comprises payment for stake in Sichuan Fuduona Auto Parts Co., Ltd. and assets and businesses of Zhejiang Fuduona Auto Parts Co., Ltd. of CNY 451 million and undertaking external debt payable by Sichuan Fuduona Auto Parts Co., Ltd. and Zhejiang Fuduona Auto Parts Co., Ltd for CNY 74.7 million. As of October 19, 2017, the consideration is revised to CNY 642 million. In a related deal, Ningbo Tuopu Group Co., Ltd. agreed to acquire assets and businesses of Zhejiang Fuduona Auto Parts Co., Ltd. For the year ended December 31, 2016, Sichuan Fuduona Auto Parts Co., Ltd. reported total assets of CNY 120.7 million, net assets of CNY 13.1 million, revenues of CNY 81.7 million and net profit of CNY 0.009 million. For the year ended December 31, 2016, Zhejiang Jiali Auto Parts Co., Ltd. reported total assets of CNY 438.3 million, net assets of CNY 236 million, revenues of CNY 407.2 million and net profit of CNY 22.8 million. The transaction is subject to approval from the Ningbo Tuopu Group Co., Ltd’s shareholders and approval from the Ministry of Commerce regarding concentration of undertakings. The Board of Directors of Ningbo Tuopu Group Co., Ltd. approved the deal on July 14, 2017. As of December 21, 2017, Ningbo Tuopu Group Co., Ltd. completed the acquisition of Sichuan Fuduona Auto Parts Co., Ltd.
Ningbo Tuopu Group Co Ltd is a China-based company mainly engaged in the research and development, production and sales of automotive parts. The Company's main products include automotive noise,vibrationharshness (NVH) damping systems, interior and exterior decoration systems, lightweight bodies, intelligent cockpit components, thermal management systems, chassis systems, air suspension, and intelligent driving systems. The Company's products are sold to domestic and foreign markets.
Ningbo Tuopu Group Co., Ltd. signed letter of intent to acquire Sichuan Fuduona Auto Parts Co., Ltd. and assets and businesses of Zhejiang Fuduona Auto Parts Co., Ltd. from Deng Dongdong and Pan Hongmei and Zhejiang Fuduona Auto Parts Co., Ltd for approximately CNY 640 million.
NINGBO TUOPU GROUP CO.,LTD. 
