Shanghai Broadband Technology Co.,Ltd cancelled the acquisition of Yunnan Kunming Investment and Supply Chain Management Co., Ltd. from Kunming Transportation Investment Co., Ltd. and Yunnan Hongshi Enterprise Management Co., Ltd.
June 10, 2021
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Shanghai Broadband Technology Co.,Ltd (SHSE:600608) agreed to acquire Yunnan Kunming Investment and Supply Chain Management Co., Ltd. from Kunming Transportation Investment Co., Ltd. and Yunnan Hongshi Enterprise Management Co., Ltd. for CNY 1.5 billion on June 3, 2019. The consideration will be paid in Class A shares of Shanghai Broadband Technology. Under the terms of the transaction, Shanghai Broadband Technology will issue 167.8 million shares to Kunming Transportation Investment and 161.3 million shares to Yunnan Hongshi Enterprise Management.
For the year ended December 31, 2018, Yunnan Kunming Investment and Supply Chain Management Co., Ltd. reported total assets of CNY 2.3 billion, revenues of CNY 11.2 billion, EBIT of CNY 119.3 million, net income of CNY 89.5 million and net assets of CNY 697.1 million. The transaction is subject to approval of the competent state-owned assets department, approval of board of directors and shareholders of Shanghai Broadband Technology, approval of China Securities Regulatory Commission and The State Administration of Market Supervision examining the concentration of operators involved in the transaction. The transaction has been reviewed and approved by the internal decision-making body of Yunnan Kunming Investment and Supply Chain Management and by the internal decision-making body of Kunming Transportation Investment and Yunnan Hongshi Enterprise Management. The transaction has also been approved by the Board of Directors of Shanghai Broadband Technology. On September 2, 2019, Kunming State-owned Assets Supervision and Administration Commission approved the transaction.
Shanghai Broadband Technology Co.,Ltd (SHSE:600608) cancelled the acquisition of Yunnan Kunming Investment and Supply Chain Management Co., Ltd. from Kunming Transportation Investment Co., Ltd. and Yunnan Hongshi Enterprise Management Co., Ltd. on June 11, 2021. Shanghai Broadband and Yunnan Kunming Investment and Supply Chain Management Co., Ltd.’s shareholders will sign “Acquisition of Assets through the Issuance of Shares Agreement Cancellation Agreement”; and Kunming Jiaochan Capital Operation Co., Ltd. will sign “Share Subscription Agreement Cancellation Agreement,” deciding to terminate Shanghai Broadband's acquisition of assets through the issuance of shares and raising of supporting funds. This has been approved in the meeting of Directorate by Supervisory Board on June 11, 2021.
Shanghai Broadband Technology Co., Ltd is a China based company principally engaged in the processing and sales of steel products. The Company's main products include cold drawn shaped steel tubes, cold drawn and cold-rolled seamless steel tubes, medium and low pressure and high pressure boiler tubes, copper rifled tubes for power station high pressure boilers, expansion joints of highway and bridge steel, corrugated beam guardrail, high frequency welded pipes for industrial heat exchangers tubes bundle, bellows, bellows expansion joints and metal hose. In addition, The Company is also engaged in the commodity trading of fuel oil, steel, billets and metallic materials. The Company operates its business in the domestic market and overseas markets.