Shenzhen MTC Co., Ltd. signed an Equity transfer agreement to acquire a 55.6% stake in Guangdong Ruigu Optical Network Communication Co.,Ltd from Li Hao, and Li Fengxiang for approximately CNY 130 million.

Shenzhen MTC Co., Ltd. (SZSE:002429) signed an Equity transfer agreement to acquire a 55.6% stake in Guangdong Ruigu Optical Network Communication Co.,Ltd from Li Hao, and Li Fengxiang for approximately CNY 130 million on July 25, 2023. Under the terms, Shenzhen MTC will pay CNY 43.3 million within 10 days since the effective date of the agreement, CNY 76.9 million within 10 days since the completion, and third installment of CNY 13.4 million within 12 months of completion. As of May 31, 2023, Guangdong Ruigu Optical Network reported total asset of CNY 423.4 million and net asset of CNY 114.4 million.

This transaction does not need to be submitted to the board of directors and regular shareholders? meeting for deliberation.