Xiangyang Automobile Bearing Co., Ltd. agreed to acquire Hubei Tri-Ring Forging Co., Ltd. from a group of sellers for CNY 700 million.
April 13, 2020
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Xiangyang Automobile Bearing Co., Ltd. (SZSE:000678) agreed to acquire Hubei Tri-Ring Forging Co., Ltd. from a group of sellers for CNY 700 million on April 13, 2020. Under the terms, Xiangyang Automobile will acquire 100% shares in Hubei Tri-Ring for a transaction price in a range between CNY 650 million to CNY 700 million, to be paid via issuance of shares. As of March 31, 2020, because the use of some monetary funds of the target company was restricted by its shareholder Hubei Sanhuan Zhonggong Co., Ltd, and it was deposited in the related party Sanhuan Group Finance Co., Ltd., the target company had the problem of shareholder non-operating funds occupation. The target company, Hubei Sanhuan Zhonggong Co., Ltd and Sanhuan Group are actively taking measures to lift the funds. If the above parties fail to resolve the above issues in a timely manner, this reorganization may face the risk of suspension, suspension or cancellation. At the same time, Xiangyang Automobile will carry out a private placement to raise supporting funds directed at not more than 35 specific investors. Expected proceeds will not exceed CNY 550 million. Issued shares will not exceed 137.9 million shares. As of December 31, 2019, Hubei Tri-Ring had total assets worth CNY 1.7 billion, Total owner's equity worth CNY 380 million, Operating revenue of CNY 953.2 million, operating profit of CNY 63.5 million and net profit of CNY 57 million. The transaction still requires Xiangyang Automobile to convene the board of directors again for deliberation. The transaction still needs to be reviewed by Xiangyang Automobile’s shareholders' meeting. The transaction still needs approval from the China Securities Regulatory Commission and other approvals or approvals that may be involved. A total of 15 counterparties such as Hubei Sanhuan Zhonggong Co., Ltd have passed its internal decision-making procedures regarding this transaction plan. The transaction plan has been reviewed and approved by the fifth meeting of the seventh board of directors of Xiangyang Automobile.
XIANGYANG AUTOMOBILE BEARING COMPANY., LTD is a China-based company principally engaged in the manufacture, research and development, sales of bearings and accessories, automobile spare parts, mechanical and electronic devices, bearing equipment and components. The Company mainly provides bearings and universal joints, including deep groove ball bearings, needle bearings, cylindrical roller bearings, clutch separate bearings, tapered roller bearings, cross shafts, automobile hub bearings, constant velocity universal joints and others. The Company mainly distributes its products in domestic and overseas markets.
XIANGYANG AUTOMOBILE BEARING CO., LTD. 
