Sandvik Investment Co., Ltd. completed the acquisition of 4.9% stake in Chuzhou Yongpu Alloy Tools Co., Ltd. from EST Tools Co., Ltd.
August 19, 2021
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Sandvik (China) Investment Co., Ltd. intends to acquire 4.9% stake in Chuzhou Yongpu Alloy Tools Co., Ltd. from EST Tools Co., Ltd (SZSE:300488) for approximately CNY 36.3 million on July 27, 2021. Within five working days after the transaction settlement date, Sandvik (China) Investment Co., Ltd. shall pay the first installment in accordance with the equity transfer agreement, which is 80% of the basic purchase price. After the transaction settlement date, if the conditions stipulated in the equity transfer agreement are met, Sandvik (China) Investment Co., Ltd. shall pay the second installment of the equity transfer agreement. As of June 30, 2021, Chuzhou Yongpu Alloy Tools Co., Ltd. recorded total assets of CNY 473.4 million, net assets of CNY 308.5 million. The transaction has been approved by the Board of Directors of EST Tools Co., Ltd.
Sandvik (China) Investment Co., Ltd. completed the acquisition of 4.9% stake in Chuzhou Yongpu Alloy Tools Co., Ltd. from EST Tools Co., Ltd (SZSE:300488) on August 20, 2021. Chuzhou Yongpu will be reported in Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions. Chuzhou Yongpu had revenues of approximately SEK 400 million (CNY 295.588 million) or the twelve month period Q2 2020 to Q1 2021, an EBIT margin slightly dilutive to Sandvik Manufacturing and Machining Solutions. Impact on earnings per share will initially be neutral.
Est Tools Co., Ltd. is engaged in the development, manufacture and sale of machine tools. Its products include sophisticated tools, spline gages, precision high-performance tool and other high-speed cutting tools and high-precision measuring instruments. The Company also provides tool grinding restructuring service.