Tongwei Co.,Ltd. completed the acquisition of 99.99% stake in Yongxiang Co., Ltd from a group of sellers.
In a related transaction, Tongwei Co.,Ltd. agreed to acquire Tongwei New Energy Co., Ltd. Tongwei Co.,Ltd. will issue 232.9 million shares as consideration for both the transactions. Tongwei Co. will acquire 1.03 billion shares in Yongxiang. Tongwei Co., Ltd will also carry out a capital raising of not more than CNY 2 billion. Yongxiang Co., Ltd reported total assets of CNY 4.84 billion, net assets of CNY 1.79 billion, revenues of CNY 847.59 million, operating loss of CNY 167.37 million and net loss of CNY 128.68 million in 2014. The transaction is subject to approval of shareholders of Tongwei Co.,Ltd, another Directorate approval of Tongwei Co.,Ltd, approval of CSRC and approval of Ministry of Commerce of People's Republic of China Anti-monopoly Bureau. The transaction was approved by Board of Tongwei Co.,Ltd on May 8, 2015. On October 21, 2015, China Securities Regulatory Commission approved the transaction. As on November 10, 2015, the transaction was disapproved by the China Securities Regulatory Commission. China Securities Co., Ltd acted as the financial advisor to Tongwei Co.,Ltd. King & Wood Mallesons, China acted as legal advisor and Sichuan Huaxin Group Certified Public Accountants acted as auditor for Tongwei Co.,Ltd.
Tongwei Co.,Ltd. (SHSE:600438) completed the acquisition of 99.99% stake in Yongxiang Co., Ltd from a group of sellers on February 4, 2016.