Yongxing Special Stainless Steel Co., Ltd. cancelled the acquisition of 67.9% stake in H-zone Lithium Technology Co., Ltd. from consortium of sellers.
April 24, 2018
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Yongxing Special Stainless Steel Co., Ltd. (SZSE:002756) signed an agreement to acquire 67.9% stake in H-zone Lithium Technology Co., Ltd. from consortium of sellers for approximately CNY 620 million on November 27, 2017. Under the terms of the transaction, Yongxing Special Stainless Steel Co., Ltd. will acquire stake by the way of share issuance of 25 million at CNY 24.84 per share. During the year ended December 31, 2016, H-zone Lithium Technology Co., Ltd. reported total assets of CNY 360 million, owners’ equity of CNY 148.46 million, revenue of CNY 216.38 million and net loss of CNY 8.14 million. The transaction is subject to the approval from shareholders of Yongxing Special Stainless Steel Co., Ltd. CSRC and after the completion of the audit and appraisal works transaction would need to hold another directorate to approve this transaction. As on November 27, 2017, transaction has been approved by the Board of Yongxing Special Stainless Steel Co., Ltd. Everbright Securities Company Limited (SHSE:601788) and Huatai United Securities Co., Ltd. acted as a financial advisor for Yongxing Special Stainless Steel Co., Ltd.
Yongxing Special Stainless Steel Co., Ltd. (SZSE:002756) cancelled the acquisition of 67.9% stake in H-zone Lithium Technology Co., Ltd. from consortium of sellers on April 25, 2018.
Yongxing Special Materials Technology Co., Ltd., formerly Yongxing Special Stainless Steel Co., Ltd. is principally engaged in the research, development, production and sales of special metal material rod and wire for stainless steel and special alloy materials. The Company's main products include stainless steel pipe billets, duplex austenitic-ferritic stainless seamless pipe billets, heat-resistant stainless seamless steel pipe billets for boiler, stainless steel wires for steel wire, stainless steel wires for cold heading and common austenitic stainless steel wires for welding, nickel based corrosion resistant alloy, among others. The Company also produces cathode material and electrolyte material for lithium ion battery. The Companyâs stainless steel bar and wire products are mainly used in thermal power, oil exploitation and refining, transportation, machinery and equipment, aerospace, shipbuilding, defense and military fields.