Shanghai Bright Power Semiconductor Co., Ltd. (SHSE:688368) signed an acquisition intention agreement to acquire 95.75% in Linko Semiconductor Co., Ltd. from a group of shareholders for approximately CNY 610 million on June 18, 2021. Consideration will be in the form of CNY 380.66 million cash and CNY 232.47 million shares. Among them, 30% of the consideration received by Li Peng, Deng Ting, Zhang Weilong, Nanjing Daomi, and Dachen Chuangtong will be paid in cash, the remaining 70% will be paid in shares, and the remaining shareholders of the target company will receive the cash consideration.

Shanghai Bright will raise the total amount of supporting funds not exceeding CNY 193,728,700 which will be used to pay the cash consideration and reorganization-related expenses of this transaction. The total assets, total owner's equity, operating income and net profit of Linko were CNY 50.50 million, CNY 38.69 million, CNY 26.95 million and CNY 1.72 million respectively for the period ended December 31, 2020. The transaction still needs to be reviewed by the Shanghai Bright Power Semiconductor Co., Ltd. board of directors and shareholders' meeting, and it needs to be approved by the competent regulatory agency.

The acquisition is subject to due diligence review. As of October 13, 2021, board of directors of Shanghai Bright approved the transaction. As of October 29, 2021, the transaction was approved by the shareholders of Shanghai Bright Power.

Yan Huarong, Wang Kan, Sun Minhu and Pan Tianyu of Grandall Lawyers (Hangzhou) Firm and Yang Zhiguo, Wang Yifang and Xie Jia of BDO China SHU LUN PAN Certified Public Accountants and Lin Chuanhui, Jiang Wenkai, Li Zhou, Ouyang Jianmin, Lu Hui, Pei Yi, Deng Haoyuan, Cao Xueting, Fang Shi Lin, Wang Honghao and Feng Jianwei of GF Securities advised Shanghai Bright.