Shenzhen Cotran New Material Co.,Ltd. signed an asset acquisition agreement to acquire Shenzhen Dongchuang Precision Technology Co., Ltd. from a group of shareholders for approximately CNY 570 million.
October 23, 2019
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Shenzhen Cotran New Material Co.,Ltd. (SZSE:300731) signed an asset acquisition agreement to acquire Shenzhen Dongchuang Precision Technology Co., Ltd. from a group of shareholders for approximately CNY 570 million on October 22, 2019. The consideration comprises cash of CNY 300 million and 12.1 million shares of Shenzhen Cotran New Material Co.,Ltd. The cash consideration will be funded from a private placement of CNY 300 million. Post completion, Shenzhen Dongchuang Precision Technology Co., Ltd. will operate as a wholly-owned subsidiary.
For the year ended December 31, 2018, Shenzhen Dongchuang Precision Technology Co., Ltd. reported total assets of CNY 244.6 million, revenues of CNY 274.2 million, net income of CNY 3.2 million and net assets of CNY 51.9 million. On October 20, 2019, Shenzhen Dongchuang Precision Technology Co., Ltd. held its shareholders’ meeting, approving this transaction. On October 23, 2019, the Board of Directors of Shenzhen Cotran New Material Co.,Ltd. approved the deal. The transaction requires approval from China Securities Regulatory Commission, shareholders and sescondary approval from Board of Directors of Shenzhen Cotran New Material Co.,Ltd. and completion of the internal decision-making process of sellers.
Shenzhen Cotran New Material Co Ltd is a company engaged in research, development, production and sales of polymer materials. The Company provides plastic metallized devices, radiators, waterproof tapes and waterproof insulating tapes for communications industry. It provides fireproof tapes, high voltage insulation tapes, metal shielding tapes and other products for power industry. The Company's other products include door and window seals used in automobile manufacturing and rail transit industries and anti-corrosion microfiber armor used in marine engineering facilities. The Company sells its products to both domestic and international markets, including Europe and South America.
Shenzhen Cotran New Material Co.,Ltd. signed an asset acquisition agreement to acquire Shenzhen Dongchuang Precision Technology Co., Ltd. from a group of shareholders for approximately CNY 570 million.