Zhejiang Tiantie Industry Co., Ltd. intends to sign an equity transfer agreement to acquire 60% stake in Jiangsu Changjili New Energy Technology Co., Ltd. from Jiang Guoqun and Jiang Jie for approximately CNY 280 million.
September 28, 2018
Share
Zhejiang Tiantie Industry Co., Ltd. (SZSE:300587) intends to sign an equity transfer agreement to acquire 60% stake in Jiangsu Changjili New Energy Technology Co., Ltd. from Jiang Guoqun and Jiang Jie for approximately CNY 280 million on September 28, 2018. Jiang Guoqun will transfer a 36% stake of Jiangsu Changjili New Energy Technology for CNY 169.2 million and Jiang Jie will transfer a 24% stake of Jiangsu Changjili New Energy Technology for CNY 112.8 million. Within 5 days since the signing of the agreement, Zhejiang Tiantie Industry will pay CNY 30 million to Jiang Guoqun and CNY 20 million to Jiang Jie. Zhejiang Tiantie Industry will pay Jiang Guoqun CNY 91.2 million in cash within 20 working days from the date of completion of the industrial and commercial change registration and CNY 60.8 million to Jiang Jie in cash (total CNY 152 million). The rest of the payment will be made before June 30, 2019.
As of December 31, 2017, the financial date of Jiangsu Changjili New Energy Technology was total asset CNY 124.4713 million, total common equity CNY 73.3104 million, total revenue CNY 147.5155 million, EBIT CNY 29.9622 million and net income CNY 26.5707 million. The transaction was approved by Zhejiang Tiantie Industry's board on the 11th meeting of the 3rd directorate.
Zhejiang Tiantie Industry Co., Ltd. is a China-based company and mainly engaged in development and research, manufacture and sales of rail engineering rubber products. The main products of the company are track structure vibration damping products and inlaid rubber crossing plates. The Company's products are applied in rail transportation, including urban rail transit, high-speed railway, heavy-duty railway and ordinary rail transit. The Company distributes its products in domestic and to overseas markets.
Zhejiang Tiantie Industry Co., Ltd. intends to sign an equity transfer agreement to acquire 60% stake in Jiangsu Changjili New Energy Technology Co., Ltd. from Jiang Guoqun and Jiang Jie for approximately CNY 280 million.