Zhejiang Jinlihua Electric Co., Ltd. intend to acquire Chengdu Runbo Technology Co., Ltd. from group of sellers for CNY 2 billion.
November 01, 2021
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Zhejiang Jinlihua Electric Co., Ltd. (SZSE:300069) intend to acquire Chengdu Runbo Technology Co., Ltd. from group of sellers for CNY 2 billion on November 1, 2021. Consideration will be paid by issuing shares and paying cash. The ratio of the issued shares and cash payment methods of the Zhejiang Jinlihua Electric Co., Ltd. to Zhou Mingjun, Sun Guoquan, Jun He Runbo, Lin Ping, Zhuhai Qianhong, Chen Dajin, Yuan Lugen, Liao Yunfei, Tang Anchao, and Yong Zhijun among the counterparties of the transaction is 65%: 35%; The proportion of the shares issued for the transaction consideration and the payment method of payment to the counterparties Zhuhai Jundao Zhiyuan, Jiangcheng Jiufu, Zeng Qinghong, Ma Teng, and Wei Ripeng is 80%:20%. After the transaction is completed, Zhejiang Jinlihua Electric will hold 100% of Chengdu Runbo. Zhejiang Jinlihua intends to issue shares to the controlling shareholder of the Zhejiang Jinlihua, Shanxi Red Sun Tourism Development Co., Ltd., to raise supporting funds. Transaction is subject to approval of shareholder of Zhejiang Jinlihua Electric Co., Ltd. and is subject to approval of Shenzhen Stock Exchange, National Defense Science and Industry Bureau and China Securities Regulatory Commission. As of March 8, 2022 National Defense Science, Technology and Industry Administration approved the deal. As of May 27, 2022, the transaction has been approved by eighteenth meeting of the fifth session of the board of directors of Jinlihua Electric.
Tianfeng Securities Co., Ltd. (SHSE:601162) acted as financial advisor to Jinlihua Electric. Yingke Law Firm acted as legal advisor to Jinlihua Electric. Zhonghui Accounting Firm (Special General Partnership) acted as accountant to Jinlihua Electric.
Jinlihua Electric Co Ltd, formerly Zhejiang Jinlihua Electric Co Ltd, is a China-based company principally engaged in the research, development, manufacture, sales of glass insulators, and provision of related technical services. The Companyâs main products include glass insulators for high-voltage, ultra high-voltage and special high-voltage alternating current (AC) and direct current (DC) electric power transmission and transformation lines, including standard type insulators, fog type suspension insulators, open air profile type suspension insulators, and cap and pin type suspension insulators, as well as ceramic insulators. The Companyâs products are mainly used in insulation and suspension wires of power transmission lines. In addition, the Company is also engaged in the operation of drama, television shows and movies through its subsidiaries.