Ningbo Shenglong Automotive Powertrain System Co., Ltd. (SHSE:603178) agreed to acquire remaining minority stakes in Ningbo Shenglong Puluoxi Camshaft Co., Ltd. and Puluoxi Shenglong (Huzhou) Precision Manufacturing Co., Ltd. from Precision Camshafts Limited (BSE:539636) and ZMM Technology Co., Ltd. for CNY 9.9 million on February 22, 2020. As per terms of the transaction, Ningbo Shenglong Automotive Powertrain System will acquire remaining 25% stake in Ningbo Shenglong Puluoxi Camshaft and remaining 45.63% stake in Puluoxi Shenglong (Huzhou) Precision Manufacturing for CNY 9.9 million. Precision Camshafts Limited will sell 22.5% stake in Ningbo Shenglong Puluoxi Camshaft for CNY 9 million and 40% stake in Puluoxi Shenglong (Huzhou) Precision Manufacturing for CNY 0 million.

ZMM Technology Co., Ltd. will sell 2.5% stake in Ningbo Shenglong Puluoxi Camshaft for CNY 0.89 million and 5.63% stake in Puluoxi Shenglong (Huzhou) Precision Manufacturing for CNY 0 million. Post completion, Ningbo Shenglong Automotive Powertrain System will hold 100% stake in Ningbo Shenglong Puluoxi Camshaft and Puluoxi Shenglong (Huzhou) Precision Manufacturing. For the year ended September 30, 2019, Ningbo Shenglong Puluoxi Camshaft and Puluoxi Shenglong (Huzhou) Precision Manufacturing reported total assets of CNY 236.2 million and net assets of CNY 70.2 million.

The transaction is approved by the Board of Directors of Ningbo Shenglong Automotive Powertrain System in the 12th session of the 4th directorate. On June 18, 2020, Ningbo Shenglong Automotive Powertrain completed the acquisition of minority stake acquisition on Ningbo Shenglong Puluoxi Camshaft Co., Ltd. and Puluoxi Shenglong (Huzhou) Precision Manufacturing Co., Ltd. from Precision Camshafts Limited.