Chongqing Sifang New Material Co., Ltd. intends to acquire 78% stake in Chongqing Xinke New Building Materials Co., Ltd. from Ling Lin and Tian Tian for approximately CNY 240 million.
May 08, 2022
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Chongqing Sifang New Material Co., Ltd. (SHSE:605122) intends to acquire 78% stake in Chongqing Xinke New Building Materials Co., Ltd. from Ling Lin and Tian Tian for approximately CNY 240 million on May 7, 2022. On May 8, 2022, Chongqing Sifang New Material Co., Ltd. (SHSE:605122) intends to acquire 78% stake in Chongqing Xinke New Building Materials Co., Ltd. from Ling Lin and Tian Tian. The final transaction price will be adjusted according to the price in the agreement, and the transaction price confirmed by both parties shall prevail. Within 3 working days after the agreement takes effect, Chongqing Sifang New Material Co., Ltd. shall pay to Ling Lin and Tian Tian respectively 40% of the tentative transaction price due to them as the initial transaction price amounts to CNY 96 million. Chongqing Sifang New Material Co., Ltd. will acquire 76% and 2% stake from Ling Lin and Tian Tian respectively. Post completion, Ling Lin and Tian Tian will hold 22% and 0% stake respectively. As of July 6, 2022, Chongqing Sifang New Material Co., Ltd. and Chongqing Xinke New Building Materials Co., Ltd signed the Supplementary Agreement confirming that the total price of the transaction has not changed and is still CNY 240 million. Chongqing Sifang New Material Co., Ltd. has signed a loan agreement for CNY 144 million to pay the equity transfer price. As of March 31, 2022, Chongqing Xinke New Building Materials Co., Ltd. has reported total assets of CNY 344.13 million and net assets of CNY 18.47 million.
This transaction has been reviewed and unanimously approved at the 16th meeting of the second board of directors held by Chongqing Sifang New Material Co., Ltd. on May 7, 2022, and does not need to be submitted to the general meeting of shareholders for consideration.
Chongqing Sifang New Material Co Ltd is a China-based company mainly engaged in the research and development, production and sales of commercial concrete. The Company also produces sand and gravel aggregates for construction. The Company's products are mainly used in roads, bridges, tunnels, water conservancy and other infrastructure construction, as well as real estate development and other fields.
Chongqing Sifang New Material Co., Ltd. intends to acquire 78% stake in Chongqing Xinke New Building Materials Co., Ltd. from Ling Lin and Tian Tian for approximately CNY 240 million.