Shaoxing Keqiao Water Group Co., Ltd., Shaoxing Keqiao District Shaoxing City State-owned Assets Investment Management Co. Ltd. and Shaoxing Keqiao District Central City Construction Investment Development Co., Ltd completed the acquisition of Zhejiang China Light&Textile Financial Guarantee Co., Ltd from Zhejiang China Light&Textile Industrial City Group Co.,Ltd.
November 09, 2020
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Shaoxing Keqiao District Central City Construction Investment Development Co., Ltd, Shaoxing Keqiao District Shaoxing City State-owned Assets Investment Management Co. Ltd. and Shaoxing Keqiao Water Group Co., Ltd. agreed to acquire Zhejiang China Light&Textile Financial Guarantee Co., Ltd from Zhejiang China Light&Textile Industrial City Group Co.,Ltd (SHSE:600790) for approximately CNY 160 million on November 4, 2020. Under the terms of transaction, Central City Construction will acquire 50% stake for CNY 79.9 million whereas Keqiao District State-owned and Shaoxing Keqiao Water Affairs Group will acquire 25% stake in Zhejiang China Light&Textile Financial Guarantee Co., Ltd for CNY 39.9 million each. The transaction price will be paid in installments which is 50% of consideration will be made within 10 days after signing of agreement. Within 10 days after the delivery date of the underlying equity, if Zhejiang China Light&Textile does not violate the statements and guarantees under this agreement, buyer shall pay the remaining transaction price equal to 50% of the transaction price to the bank account designated by Zhejiang China Light&Textile group.
As of September 30, 2020, Zhejiang China Light&Textile Financial Guarantee Co., Ltd has total assets and net assets as CNY 168.9 million and CNY 125.4 million. For year ended December 31, 2019, Zhejiang China Light&Textile Financial Guarantee Co., Ltd reported operating income of CNY 2.58 million and net profit of CNY 4.9 million. The transaction must be approved by the State-owned Assets Management Department of Keqiao District. The independent directors of the Zhejiang China Light&Textile Industrial City Group have issued pre-approval opinions for the transaction; the audit committee of the board of directors agreed to submit it to the company’s board of directors for deliberation. Transaction has been approved and filed by the State-owned Assets Office of Keqiao District. The transaction has completed the approval procedures of the relevant state-owned assets.
Shaoxing Keqiao Water Group Co., Ltd., Shaoxing Keqiao District Shaoxing City State-owned Assets Investment Management Co. Ltd. and Shaoxing Keqiao District Central City Construction Investment Development Co., Ltd completed the acquisition of Zhejiang China Light&Textile Financial Guarantee Co., Ltd from Zhejiang China Light&Textile Industrial City Group Co.,Ltd (SHSE:600790) on November 10, 2020. Zhejiang China Light&Textile Industrial City Group Co.,Ltd (SHSE:600790) has recently received the first batch of equity transfer payments.
Zhejiang China Light&Textile Industrial City Group Co.,Ltd is a China-based company principally engaged in development and leasing of properties for commercial use and property management in the market of textile wholesaling. The Company operates its businesses in domestic market. The Company owns Dongsheng Road market, eastern market, united market, north trading zone, north united market and Tianhui market in the trading zones of China Light & Textile Industrial City.
Shaoxing Keqiao Water Group Co., Ltd., Shaoxing Keqiao District Shaoxing City State-owned Assets Investment Management Co. Ltd. and Shaoxing Keqiao District Central City Construction Investment Development Co., Ltd completed the acquisition of Zhejiang China Light&Textile Financial Guarantee Co., Ltd from Zhejiang China Light&Textile Industrial City Group Co.,Ltd.