Shanghai SK Automation Technology Co., Ltd. signed a letter of intent to acquire 51% stake in Ningde Dongheng Machinery Co., Ltd. from Shi Zenghui, Lin Chenbin and Lin Liju.
February 10, 2022
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Shanghai SK Automation Technology Co., Ltd. (SHSE:688155) signed a letter of intent to acquire 51% stake in Ningde Dongheng Machinery Co., Ltd. from Shi Zenghui, Lin Chenbin and Lin Liju for CNY 816 million on February 10, 2022. Shi Zenghui will sell 21%, Lin Chenbin will sell 20% and Lin Liju will sell 10% in Ningde Dongheng Machinery. Post this acquisition, Shi Zenghui will own 49% stake in Ningde Dongheng. The agreement has signed on May 20, 2022. The shareholders of Shanghai SK Automation Technology has approved the deal in extraordinary shareholders meeting held on July 7, 2022. The shareholders of Ningde Dongheng Machinery has approved the deal. Ningde Dongheng Machinery has reported total assets of CNY 730.2384 million, revenue of CNY 904.1938 million and net profit of CNY 141.8015 million in 2021. As of July 15, 2022, Shanghai SK Automation Technology has paid the first installment of the equity transfer payment amounting to CNY 408.0816 million to Shi Zenghui, Lin Chenbin and Lin Liju. In the first phase of equity transfer payment, CNY 240 million was paid through M&A loans and CNY 168.0816 million was paid through Shanghai SK Automation Technology's own funds.
Dongxing Securities Corporation Limited (SHSE:601198) acted as Independent Financial Advisor, Shanghai Guangfa Law Firm acted as Legal advisor and Shanghai Certified Public Accountants acted as accountant to Shanghai SK Automation Technology Co., Ltd. (SHSE:688155).
Shanghai SK Automation Technology Co Ltd is a China-based company mainly engaged in the research and development, production and sales of intelligent automation equipment for new energy vehicles and traditional fuel vehicles, industrial manufacturing data systems and precision structural parts for new energy power batteries. New energy vehicle intelligent automation equipment is divided into power battery module production lines, electric vehicle powertrain production lines, testing and inspection systems and fuel cell stack production lines. Intelligent automation equipment for fuel vehicles includes transmission production lines and chassis system production lines. The Company also provides industrial manufacturing data systems. The Company's products mainly serve the automotive and auto parts manufacturing fields.
Shanghai SK Automation Technology Co., Ltd. signed a letter of intent to acquire 51% stake in Ningde Dongheng Machinery Co., Ltd. from Shi Zenghui, Lin Chenbin and Lin Liju.