Zhejiang Tiantie Industry Co., Ltd. intends to sign an Equity Transfer Agreement to acquire remaining 40% stake in Jiangsu Changjili New Energy Technology Co., Ltd. from Jiang Guoqun and Jiang Jie for approximately CNY 230 million on April 14, 2021.
April 13, 2021
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Zhejiang Tiantie Industry Co., Ltd. (SZSE:300587) intends to sign an Equity Transfer Agreement to acquire remaining 40% stake in Jiangsu Changjili New Energy Technology Co., Ltd. from Jiang Guoqun and Jiang Jie for approximately CNY 230 million on April 14, 2021. Under the terms of transaction, Zhejiang Tiantie Industry will acquire 7.2 million and 4.8 million shares representing 24% and 16% stake in Jiangsu Changjili New Energy for CNY 139,2 million and CNY92.8 million respectively. Consideration will be paid in two installments, Initial 20% of payemnt is made and remaining 80% will be paid within 30 working days from the transfer of 40.00% equity of Changjili Company to the completion of the industrial and commercial change registration. For year ended December 31, 2020, The Jiangsu Changjili New Energy had total assets and net assets as CNY 247 million and CNY 210 million whereas the revenue, Operating and net profit was CNY 202.2 million, CNY 53.2 million and CNY 46.2 million respectively. Transaction needs to be approved by the general meeting of shareholders.
Zhejiang Tiantie Industry Co Ltd is a company mainly engaged in research and development, production and sales of rail engineering rubber products. The Company's primary products include isolated vibration damping pads and vibration absorbing silencers for rail wave guide. The products are used to reduce noise interference caused by the operation of rail transit trains. Its products are applied in a range of rail transportation fields, including urban rail transportation, high-speed railway and heavy-duty railway.
Zhejiang Tiantie Industry Co., Ltd. intends to sign an Equity Transfer Agreement to acquire remaining 40% stake in Jiangsu Changjili New Energy Technology Co., Ltd. from Jiang Guoqun and Jiang Jie for approximately CNY 230 million on April 14, 2021.