Hainan RuiZe New Building Material Co.,Ltd completed the acquisition of remaining 80% stake in Guangdong Lvrun Environmental Management Co., Ltd. from Xu Zhanyuan and Deng Yandong.
January 25, 2018
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Hainan RuiZe New Building Material Co.,Ltd (SZSE:002596) signed framework agreement to acquire remaining 80% stake in Guangdong Lvrun Environmental Management Co., Ltd. from Xu Zhanyuan and Deng Yandong on August 4, 2017. Hainan RuiZe New Building Material Co.,Ltd (SZSE:002596) signed asset acquisition agreement to acquire remaining 80% stake in Guangdong Lvrun Environmental Management Co., Ltd. from Xu Zhanyuan and Deng Yandong for CNY 1.4 billion on September 11, 2017. Out of total consideration, CNY 669.6 million will be paid in cash and remaining through issuance of 90.13 million shares at CNY 7.66 per share. Hainan RuiZe New Building Material Co.,Ltd will raise not more than CNY 690 million through issuance of shares to not more than 10 investors as supporting funds. For the year ended December 31, 2016, Guangdong Lvrun Environmental Management Co., Ltd. reported total assets of CNY 312.7 million, net assets of CNY 203.1 million, revenue of CNY 379.02 million, operating profit of CNY 128.4 million, and net profit of CNY 101.5 million.
The transaction is subject to approval from shareholders of Hainan RuiZe New Building Material Co.,Ltd and the China Securities Regulatory Commission. The transaction has been approved at Hainan RuiZe New Building Material's 46th session of the 3rd directorate on August 4, 2017. As of September 27, 2017, the transaction has been approved by the 3rd session of 4th directorate and the 3rd session of 4th supervisory board of Hainan RuiZe New Building Material Co.,Ltd. on September 11, 2017. Merger, Acquisition, and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission in its 69th work meeting of 2017 approved the transaction on December 7, 2017.
GF Securities Co., Ltd. acted as financial advisor, Shu Jin Law Firm acted as legal advisor, and BDO China Shu Lun Pan Certified Public Accountants acted as an accountant to Hainan RuiZe New Building Material Co.,Ltd.
Hainan RuiZe New Building Material Co.,Ltd (SZSE:002596) completed the acquisition of remaining 80% stake in Guangdong Lvrun Environmental Management Co., Ltd. from Xu Zhanyuan and Deng Yandong on January 26, 2018. Guangdong Lvrun Environmental Management Co., Ltd are wholly owned subsidiary of Hainan Ruize New Building Material Co., Ltd.
Hainan RuiZe New Building Material Co., Ltd. is a China-based company principally engaged in the production and sales of non-metallic mineral products. The Company mainly operates through four segments. The Commercial concrete segment is mainly engaged in the production and sales of various strength grades of ordinary concrete, marine concrete, ecological concrete, colored landscape concrete and decorative concrete. The Cement segment is mainly engaged in the production and sales of bulk PO42.5R cement. The Landscaping segment is mainly engaged in landscape design, landscape engineering construction, landscaping maintenance services and seedling planting and sales. The Municipal Sanitation segment is engaged in municipal solid waste cleaning, collection, transportation, disposal, recycling and utilization as well as urban afforestation management and maintenance. The Company mainly operates in the domestic market, with Hainan as the main market.
Hainan RuiZe New Building Material Co.,Ltd completed the acquisition of remaining 80% stake in Guangdong Lvrun Environmental Management Co., Ltd. from Xu Zhanyuan and Deng Yandong.
HAINAN RUIZE NEW BUILDING MATERIAL CO.,LTD 
