Wuxi Zhenhua Auto Parts Co., Ltd. completed the acquisition of Wuxi Zhenhua Kaixiang Technology Co., Ltd. from Qian Jinxiang and Qian Ben.
February 15, 2023
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Wuxi Zhenhua Auto Parts Co., Ltd. (SHSE:605319) entered into agreement of intent to acquire Wuxi Zhenhua Kaixiang Technology Co., Ltd. from Qian Jinxiang and Qian Ben for approximately CNY 680 million on July 8, 2022. Under the terms, CNY 220.336 million will be paid in cash and CNY 461.664 million will be paid in shares as the 33.6 million shares issued as part of stock consideration by Wuxi Zhenhua Auto Parts Co., Ltd. Wuxi Zhenhua Auto Parts Co., Ltd. intends to purchase the underlying assets by issuing shares and paying cash through Private placement. Transaction has been approved by the shareholders of Wuxi Zhenhua and board of Wuxi Zhenhua Auto Parts Co., Ltd. Transaction is still subject to shareholders of Wuxi Zhenhua Auto Parts Co., Ltd. Wuxi Zhenhua Kaixiang has reported total assets of CNY 134.4897 million and Total owners' equity of CNY 97.2981 million on December 31, 2021. As of October 17, 2022, Wuxi Zhenhua Auto Parts Co., Ltd. shareholders approved the transaction. As of December 21, 2022, the China Securities Regulatory Commission has conditionally approved issue of shares and payment of cash to purchase assets and raise supporting funds and the approval is valid for 12 months.
Guotai Junan Securities Co., Ltd. acted as a financial advisor, Grandall Law Firm acted as legal advisor and RSM China CPA LLP acted as an accountant of Wuxi Zhenhua Auto Parts Co., Ltd.
Wuxi Zhenhua Auto Parts Co., Ltd. (SHSE:605319) completed the acquisition of Wuxi Zhenhua Kaixiang Technology Co., Ltd. from Qian Jinxiang and Qian Ben on February 16, 2023.
Wuxi Zhenhua Auto Parts Co Ltd is a China-based company mainly engaged in the development, production and sales of automotive stamping and welding parts and related molds. The automotive stamping parts produced and sold by the Company cover automotive body parts, chassis parts, powertrain parts, including oil pans and converter housings, as well as electronic and electrical components, including battery trays and battery trays. The Company provides subassembly assembly processing services, and its final product is automobile body parts. The Company is also engaged in the design, development and processing of stamping dies. The Company is also engaged in the research, development and sales of automotive engine parts.