Shanghai Tianyang Hot Melt Adhesives Co., Ltd. signed an agreement to acquire 70% stake in Guangdong Yulan Group Co.,Ltd from a group of sellers for approximately CNY 200 million.
February 19, 2019
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Shanghai Tianyang Hot Melt Adhesives Co., Ltd. (SHSE:603330) signed an agreement to acquire 70% stake in Guangdong Yulan Group Co.,Ltd from a group of sellers for approximately CNY 200 million on February 20, 2019. Consideration will be paid in cash of CNY 98.2 million and issuance of 4.998 million shares. Wan Qingtang, Zhang Zhiwei, Zhang Peiwen, You Lijuan, Zhang Xiaoqiong will be paid a combination of cash of CNY 93.8 million and stock, while the remaining sellers will be paid in cash only. In a related transaction, Shanghai Tianyang Hot Melt Adhesives Co., Ltd. will raise funds of CNY 94 million through non public offering. The cash portion of the deal will be funded from the proceeds of non-public offering of shares not exceeding CNY 94 million. Deal is subject to re-approval by Board of Shanghai Tianyang Hot Melt Adhesives after the completion of the audit and evaluation work, approval by the shareholders' meeting of Shanghai Tianyang Hot Melt Adhesives, China Securities Regulatory Commission to approve the deal, Guangdong Yulan Group needs to be delisted from the small and medium-sized share transfer system and changed to a limited liability company. On February 20, 2019, the 20th meeting of the second directorate of Shanghai Tianyang Hot Melt Adhesives reviewed and approved the deal. On April 29, 2019, the parties signed a supplemental agreement to extend the termination period of the agreement from April 30, 2019 to May 31, 2019. The supplemental agreement has been approved by Board of Shanghai Tianyang Hot Melt Adhesives. Central China Securities Holdings Co., Ltd. acted as financial advisor to Shanghai Tianyang Hot Melt Adhesives. BDO China SHU LUN PAN Certified Public Accountants LLP acted as accountant to Shanghai Tianyang Hot Melt Adhesives Co., Ltd. GF Law Firm Shanghai acted as legal advisor to Shanghai Tianyang Hot Melt Adhesives Co., Ltd.
Tianyang New Materials Shanghai Technology Co Ltd, formerly Shanghai Tian Yang Hotmelt Adhesives Co Ltd, is a China-based company principally engaged in research and development, manufacture and sales of thermoplastic environmental protection adhesive materials. The Company's main products include hot melt adhesive powders and granules, fusible films, ethylene-vinyl acetate copolymer (EVA) films used for solar cell packaging and hot melt adhesive films. Its products are mainly applied in the fields of shoes and clothes, automotive trims, solar cell packaging, household textiles, electronics, industrial filtration, hot melt adhesive products, printing and packaging, furnishings and coating, among others.
Shanghai Tianyang Hot Melt Adhesives Co., Ltd. signed an agreement to acquire 70% stake in Guangdong Yulan Group Co.,Ltd from a group of sellers for approximately CNY 200 million.